A bank manager randomly selected 25 large cash transactions from the 1,500 made in a month. The manager then checked to see that the correct procedures for reporting these transactions were followed.

(a) Is it appropriate to use a binomial model in this situation?

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(b) If the chance for a procedural error is 10%, is it likely that the manager finds more than two such transactions? Argue informally, without computing the probability, from the mean and SD of the binomial model.

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(c) Find the probability in part (b).