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Two hundred and eighty employee travel expense reimbursement vouchers were filed

ID: 3431262 • Letter: T

Question

Two hundred and eighty employee travel expense reimbursement vouchers were filed last year in the finance department at Ramjac Corporation. Of these, 27 contained errors. A corporate auditor audits a sample of twelve vouchers. Let X be the number of incorrect vouchers in the sample.

Find the probability that the sample contains no erroneous vouchers. (Do not round your intermediate answers. Round your answer to 4 decimal places.)

Find the probability that the sample contains at least two erroneous vouchers. (Do not round your intermediate answers. Round your answer to 4 decimal places.)

Two hundred and eighty employee travel expense reimbursement vouchers were filed last year in the finance department at Ramjac Corporation. Of these, 27 contained errors. A corporate auditor audits a sample of twelve vouchers. Let X be the number of incorrect vouchers in the sample.

Explanation / Answer

(a)Yes.

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(b) Given X follows Binomial distribution with n=12, p=27/280 =0.09642857

P(X=x)=12Cx*(0.09642857^x)*(1-0.09642857)^(12-x)

So the probabilty is

P(X=0) =12C0*(0.09642857^0)*(1-0.09642857)^(12-0) =0.2962

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(c) P(X>=2)=1-P(X=0)-P(X=1) =0.3245

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