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A Hospital-Billing Auditor Has Been Inspecting Patient Bills

Question 155

Essay

A hospital-billing auditor has been inspecting patient bills. While almost all bills contain some errors, the auditor is looking now for large errors (errors in excess of $250). Among the last 100 bills inspected, the defect rate has been 14%. Calculate the upper and lower limits for the billing process for 99.7% confidence.

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0.14 plus ...

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