Your company's internal auditor believes that 10 percent of the company's invoices contain errors.To check this theory,20 invoices are randomly selected,and 5 are found to have errors.What is the probability that of the 20 invoices selected,5 or more would contain errors if the theory is valid?
A).0433
B).0319
C).9567
D).8660

Question

Quizplus · Accepted Answer

The probability of finding 5 or more errors in 20 invoices, given a 10% error rate, can be calculated using the binomial distribution. The probability of exactly 5 errors is calculated using the binomial probability formula, and then the cumulative probability for 5 or more errors is found. The correct cumulative probability is approximately 0.0433.

Your Company's Internal Auditor Believes That 10 Percent of the Company's