# Question

Your company is running an audit on the Sleaze Company. Because Sleaze has a bad habit of overcharging its customers, the focus of your audit is on checking whether the billing amounts on its invoices are correct. Assume that each invoice is for too high an amount with probability 0.06 and for too low an amount with probability 0.01 (so that the probability of a correct billing is 0.93). Also, assume that the outcome for any invoice is probabilistically independent of the outcomes for other invoices.

a. If you randomly sample 200 of Sleaze’s invoices, what is the probability that you will find at least 15 invoices that overcharge the customer? What is the probability you won’t find any that undercharge the customer?

b. Find an integer k such that the probability is at least 0.99 that you will find at least k invoices that overcharge the customer.

a. If you randomly sample 200 of Sleaze’s invoices, what is the probability that you will find at least 15 invoices that overcharge the customer? What is the probability you won’t find any that undercharge the customer?

b. Find an integer k such that the probability is at least 0.99 that you will find at least k invoices that overcharge the customer.

## Answer to relevant Questions

Continuing the previous problem, suppose that when Sleaze overcharges a customer, the distribution of the amount overcharged (expressed as a percentage of the correct billing amount) is normally distributed with mean 15% and ...You have a device that uses a single battery, and you operate this device continuously, never turning it off. Whenever a battery fails, you replace it with a brand new one immediately. Suppose the lifetime of a typical ...From the information that follows, determine the mass of substance C that will be formed if 45.0 g of substance A reacts with 23.0 g of substance B. (Assume that the reaction between A and B goes to completion.) a. Substance ...In the spring of 1984, concern arose over the presence of ethylene dibromide, or EDB, in grains and cereals. EDB has the molecular formula C2H4Br2 and until 1984 was commonly used as a plant fumigant. The federal limit for ...Portland cement acts as the binding agent in concrete. A typical Portland cement has the following composition: Assuming that the impurities contain no Ca, Al, or Fe, calculate the mass percent of these elements in this ...Post your question

0