Find k invoices that overcharge the customer

Reference no: EM13116390

Our business is doing an audit on the shell company. Because shell has a habit of overcharging its customers, the focus of your audit is on checking whether the billing amounts on its invoices are correct. Assume that each invoice is for too high an amount with probability 0.06 and for too low an amount with probability 0.01 (so that the probability of a correct billing is 0.93). Also assume that the outcome for any invoice is probabilistically independent of the outcomes of other invoices.

Find an integer k that the probability is at least .99 that you will find k invoices that overcharge the customer. Hint: use trial and error with the BInomdist function to find k.

Reference no: EM13116390

Questions Cloud

Currency flactuations : How could an organization that needs Euros in six months protect itself from currency fluctuations?

Issuance of the bonds : Issuance of the bonds. Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method.

Explain global marketing : global marketing - marketing that targets markets throughout the world - has become an imperative for business.

Find onfidence interval for the mean of the population : Find the 95% confidence interval for the mean, of the population from which the sample was drawn. (Round the values to whole numbers for your confidence interval.)

Find k invoices that overcharge the customer : Find an integer k that the probability is at least .99 that you will find k invoices that overcharge the customer. Use trial and error with the BInomdist function to find k.

Compute the book value of vega : Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted. Compute the book value of Vega at January 1, 2006

Excess of par increase for this transaction : Mitchell's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's Paid-in capital - excess of par increase for this transaction?

What amount of the above-listed items should be classified : The office space is used equally by dye's sales and accounting departments. What amount of the above-listed items should be classified as general and administrative expenses in dye's multiple-step income statement?

The cumulative effect of this accounting change : with no residual value. At the beginning of 2011, a decision was made to change to the straight-line method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change, net of tax, is

User Account

All Pages