Question: Example 3 From past experience it is known that 3% of accounts in a large accounting population are in error. What is the probability that

Example 3 From past experience it is known that 3% of accounts in a large accounting population are in error. What is the probability that 5 accounts are audited before an account in error is found? What is the probability that the first account in error occurs in the first five accounts audited? Solution P(Y 5) 0.03(0.97) 0.02655878 4 = = = P(Y 5) 1 0.97 0.14126597 5

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