A hospital-billing auditor has been inspecting patient bills. While almost all bills contain some errors, the auditor is looking now for large errors (errors in excess of $250 )
Each day last week, the auditor examined 100 bills and found an average defect rate of 16%. Calculate the upper and lower limits for the billing process for 99.73% confidence.
0.16 plus or minus (3 )(0.03667 ): LCL = .050 and UCL = 0.270
You might also like to view...
Why are audits of most stock issuance usually considered to be relatively straightforward?
a. The number of transactions is small. b. The transactions are typically material. c. Most stock is issued for cash. d. There are no disclosure issues to worry about, since stock amounts are reported in the body of the balance sheet.
Explain the Wassenaar Arrangement
What will be an ideal response?
Unless the parties agree otherwise, the credit period begins to run from the time the goods are
shipped. Indicate whether the statement is true or false
Information regarding the price of a roll of camera film (35 mm, 24 exposure) for a sample of 12 cities worldwide is shown below. Determine a 95% confidence interval for the population mean assuming that the population is normally distributed. Price of Film InformationMean5.3667 Standard Error0.7409 Median4.8700 Standard Deviation2.5666 Sample Variance6.5873 Kurtosis4.0201 Skewness1.8041 Range9.4100 Minimum2.7300 Maximum12.1400 Sum64.4000 Count12.0000
What will be an ideal response?