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An accounting firm noticed that of the companies it audits, 85% show no inventory shortages, 10% show small inventory shortages, and 5% show large inventory
An accounting firm noticed that of the companies it audits,
85%
show no inventory shortages,
10%
show small inventory shortages, and
5%
show large inventory shortages. The firm has devised a new accounting test for which it believes the following probabilities hold:\ company will pass test
|
| no shortage
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