Question: Suppose documents in a lending organization are selected randomly (without replacement) for review. In a set of 50 documents, suppose that 2 actually contain errors.

Suppose documents in a lending organization are selected randomly (without replacement) for review. In a set of 50 documents, suppose that 2 actually contain errors.

(a) What is the minimum sample size such that the probability exceeds 0.90 that at least 1 document in error is selected?

(b) Comment on the effectiveness of sampling inspection to detect errors.

Step by Step Solution

3.50 Rating (183 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Let X denote the number of documents in error in the sampl... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Applied Statistics and Probability Questions!