Question
When collecting debts, a debtor company rounds 60,000 debt contracts to the nearest ten dollars. a) Stating any assumptions made, compute the probability that the
When collecting debts, a debtor company rounds 60,000 debt contracts to the nearest ten dollars.
a) Stating any assumptions made, compute the probability that the total debt value collected will be altered by more than $500 from the original value (before rounding). No other information is provided. Show all details of your working.
b) Comment on should the debt collector company be worried that the amount altered with this rounding exceeds $2,000? Please explain your answer briefly.
Solve with it statistically using CLT or standardization.
Step by Step Solution
3.35 Rating (164 Votes )
There are 3 Steps involved in it
Step: 1
Solution a As we are rounding the values to the nearest 10 here therefore for each of the 60000 obse...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Prealgebra
Authors: Elayn Martin Gay
7th edition
321955048, 978-0321955043
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App