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 120 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
Excellent

miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Scattergrams are a mechanism used by political scientists to show patterns and relationships among v Scattergrams are a mechanism used by political scientists to show patterns and relationships among v
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
Age Differences in Attention to a Puppet Show Video Age Differences in Attention to a Puppet Show Video
Harvard Alumni Study show who are more physically active in middle adulthood Harvard Alumni Study show who are more physically active in middle adulthood
Surpluses and shortages question Surpluses and shortages question
MANAGEMENT ACCOUNTING MANAGEMENT ACCOUNTING
Video: Vasectomy

For a complete list of videos, visit our video library