Find probability that average balance of account is less

Reference no: EM13114452

To check the Ace company's claim that the total of their 2,500 accounts receivable was $1,175,000 and that the standard deviation of the individual accounts was $ 200 the external auditor took a sample of 25 accounts which totalled $9,475.

a) If the company's report is correct, what is the probability that the average balance of an account in the sample is $394 or less?

b) If the total of the accounts receivable is only $1,000,000 (but the standard deviation was correct), what is the probability the total of the sample would be less than $9,475?

Reference no: EM13114452

Questions Cloud

Determine the total calcium in a small blood sample : Which instrument can be used to determine the total calcium in a small blood sample.suggest a second method suitable for determine the free calcium ions on a similar sample of bood.

Explain payroll deduction at the end of each month : Explain Deposits to the Roth IRA will be made via a $150 payroll deduction at the end of each month. Assume that Edward will earn 8.75% over the life of the IRA. How much will he have at the end of 35 years?

Determine the equivalent units and costs per equivalent : Determine the equivalent units and costs per equivalent unit for materials and conversion costs. Are the ending balances in the WIP and Finished Goods inventory as shown correct? If they are not correct, what should the ending balances be?

Differences between markets and central planning : Discuss the differences between markets and central planning. Does this issue have anything to do with the demise of the Soviet Union? Explain.

Find probability that average balance of account is less : If the company's report is correct, what is the probability that the average balance of an account in the sample is $394 or less?

Illustrate what advice should you give widgets r us : The market price is $3 per unit, the marginal cost of the 250th unit is $2.75, average total cost is $3.50 per unit, and average variable cost is $2.50 per unit. What advice should you give Widgets R Us?

Historical evolution of healthcare system : Why is it important to understand the historical evolution of the healthcare system?

Explain the three kinds of skill sets required to manage : Explain the three kinds of skill sets required to manage this industry. One set of enabling skills is described and two sets of management skills are also described

Calculate the weight molarity of silver : A 0.1752g sample of silver nitrate was dissolved in 502.3g of distilled water. Calculate the weight molarity of silver in this solution.

User Account

All Pages