Find expected value-variance of number of altered accounts

Reference no: EM13121021

Assume that in the 2500 business accounts of a bank, 125 have been fradulently altered. The alternations are sufficiently subtle that only a detailed audit can uncover them. Fifty business accounts are chosen at random for detailed auditing.

(a) What is the probability that at least one of the alternations is discovered?

(b) Find the expected value and variance of the number of altered accounts discovered during the audit.

Reference no: EM13121021

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