Magic Valley Memorial Hospital administrators have recently received an internal audit report that indicates that 15% of all patient bills contain an error of one form or another
After spending considerable effort to improve the hospital's billing process, the administrators are convinced that things have improved. They believe that the new error rate is somewhere closer to 0.05.Suppose that recently the hospital randomly sampled 10 patient bills and conducted a thorough study to determine whether an error exists. It found 3 bills with errors. Assuming that managers are correct that they have improved the error rate to 0.05, what is the probability that they would find 3 or more errors in a sample of 10 bills?A) 0.0115
B) 0.0233
C) 0.0884
D) 0.0766
A
You might also like to view...
The U.S. Constitution guarantees a right to a jury trial in:
a. the First Amendment b. the Fourth Amendment c. the Fifth Amendment d. the Sixth Amendment e. the Eighth Amendment
The cost recovery period for 3-year class property is 4 years
a. True b. False Indicate whether the statement is true or false