Question: An auditor inspects 20 randomly selected transactions processed by a company over the last year. In the past the auditor has found 5% of transactions

An auditor inspects 20 randomly selected transactions processed by a company over the last year. In the past the auditor has found 5% of transactions of this type have been processed incorrectly by this company.

a. Identify the type of distribution being described by the random variable in the problem above and write down the value(s) of its parameter(s).

b. What is the probability the auditor will find 4 transactions which have been processed incorrectly?

c. What is the probability the auditor will find at least 2 transactions which have been processed incorrectly?

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