A hospital auditor has been asked to estimate the proportion of patient accounts in which the hospital

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A hospital auditor has been asked to estimate the proportion of patient accounts in which the hospital overcharged a patient during the last 25 years. If the auditor will use a simple random sample to estimate this proportion, determine

(a) the sample size required for estimating the proportion with a bound on the error of estimation of 0.035.

(b) the cost of sampling if the initial cost is $40,000 and the cost of sampling a record is $5.

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