To find out does the auditor have convincing evidence that the company’s claim is not true or not and design and carry out a simulation to answer.
Answer to Problem 30E
The auditor does not have convincing evidence that the company’s claim is not true.
Explanation of Solution
To carry out simulation, we should,
Use two-digit numbers.
Let the numbers
Let the numbers between
Randomly select six numbers, with repetition allowed.
Count the number of times the train is late.
Repeat this simulation multiple times.
You will most likely obtain a result of between
Thus they do not have convincing evidence that the company’s claim is not true.
Chapter 5 Solutions
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