Magic Valley Memorial Hospital administrators have recently received an internal audit report that indicates that 15% of
Question:
a. Suppose that recently the hospital randomly sampled 10 patient bills and conducted a thorough study to determine whether an error exists. It found 3 bills with errors. Assuming that managers are correct that they have improved the error rate to 0.05, what is the probability that they would find 3 or more errors in a sample of 10 bills?
b. Referring to part a, what conclusion would you reach based on the probability of finding 3 or more errors in the sample of 10 bills?
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Related Book For
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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