Question: 38. Detecting Fraud When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of amounts on checks from companies that were
38. Detecting Fraud When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of amounts on checks from companies that were suspected of fraud. Among 784 checks, 61% had amounts with leading digits of 5. Construct a 99% confidence interval estimate of the proportion of checks having amounts with leading digits of 5. When checks are issued in the normal course of honest transactions, it is expected that 7.9% of the checks will have amounts with leading digits of 5. What does the confidence interval suggest?
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