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.
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