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Author Question: An accounting firm has noticed that of the companies it audits, 85 show no inventory shortages, 10 ... (Read 27 times)

APUS57

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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


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angrybirds13579

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Reply #1 on: Jun 24, 2018
Answer to Question 1

a. .515
b. .927

Answer to Question 2

B


APUS57

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Reply 2 on: Jun 24, 2018
Thanks for the timely response, appreciate it

emsimon14

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Reply 3 on: Yesterday
:D TYSM

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