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Regulators at the stock exchange claim that only 10% of all companies report incorrect profits, but you suspect that the proportion is much higher .
Regulators at the stock exchange claim that only 10% of all companies report incorrect profits, but you suspect that the proportion is much higher. Use the results of the audit of 250 companies with results that 45 reported incorrect profits to answer the following.
How many companies should have been audited at 95% confidence level in order for the margin of error to be 4%? Use p=0.10 in your formula. Show all work.
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