This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An accounting firm has noticed that of the companies it audits, 85 show no inventory shortages, 10 ... (Read 51 times)

APUS57

  • Hero Member
  • *****
  • Posts: 571
on: Jun 24, 2018
An accounting firm has noticed that of the companies it audits, 85 show no inventory shortages, 10 show small inventory shortages and 5 show large inventory shortages. The firm has devised a new accounting test for which it believes the following probabilities hold: P(company will pass test  no shortage) = .90 P(company will pass test  small shortage) = .50 P(company will pass test  large shortage) = .20
 a. If a company being audited fails this test, what is the probability of a large or small inventory shortage?
  b. If a company being audited passes this test, what is the probability of no inventory shortage?

Question 2

The interval estimate of the mean value of y for a given value of x is
 a. prediction interval estimate
  b. confidence interval estimate
  c. average regression
  d. x versus y correlation interval


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

angrybirds13579

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 24, 2018
Answer to Question 1

a. .515
b. .927

Answer to Question 2

B


APUS57

  • Member
  • Posts: 571
Reply 2 on: Jun 24, 2018
Gracias!

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Posterior views of H. erectus, Neandertal, and modern H. sapiens show differences in vault shape. Posterior views of H. erectus, Neandertal, and modern H. sapiens show differences in vault shape.
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ... Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ...
Cost Accounting: A Managerial Emphasis 16th Edition Cost Accounting: A Managerial Emphasis 16th Edition
Surpluses and shortages question Surpluses and shortages question
Food Labels Now Show Trans Fats Food Labels Now Show Trans Fats
Video: DNA close up Animation

For a complete list of videos, visit our video library