Reference no: EM131474125

Question 1: Benford's Law is a probability rule frequently used by accounting auditors to detect systematic fraud. It states that approximately 11.3% of numbers will begin with the number 2. An auditor decides to investigate a particular firm further if a sample proportion of their invoices, with the invoiced number beginning with a 2, is in the highest 0.5% of all possible sample proportions. What sample proportion will cause further investigation of the firm if a random sample of 671 invoices is selected? Express your answer in decimal form (ie not as a percentage), correct to two decimal places.

Question 2: GIL internet services record customer usage patterns. Historically, they have found the duration of an internet session is normally distributed with an average duration of 78.5 minutes and a standard deviation of 23.4 minutes. What is the probability that a randomly selected session would last longer than two hours or less than thirty minutes? (4 decimal places)

Question 3: The average and standard deviation of the amount of Goods and Services Tax remitted by all performance artists in a twelve month period were $5.81 thous and $2.4 thous respectively. If a sample of 123 artists was taken, find the sample average value (in thous dollars) below which only 1% of taxes would lie.