Whistle-blowing refers to an employee's reporting of wrongdoing by co-workers. A survey found that about 5% of

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Whistle-blowing refers to an employee's reporting of wrongdoing by co-workers. A survey found that about 5% of employees contacted had reported wrongdoing during the past 12 months. Assume that a sample of 25 employees in one agency are contacted and let x be the number who have observed and reported wrongdoing in the past 12 months. Assume that the probability of whistle-blowing is .05 for any federal employee over the past 12 months.

a. Find the mean and standard deviation of x. Can x be equal to its expected value? Explain.

b. Write the event that at least 5 of the employees are whistle-blowers in terms of x. Find the probability of the event.

c. If 5 of the 25 contacted have been whistle-blowers over the past 12 months, what would you conclude about the applicability of the 5% assumption to this agency? Use your answer to part b to justify your conclusion.

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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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