The true proportion of accounts receivable with some kind of error is 8 percent for Moby Group. If an auditor randomly samples 100 accounts receivable,
• a) is it acceptable to use the normal approximation to estimate the probability that fewer than two will contain errors? Explain your reasoning.
• b) what is the mean and standard deviation of errors?
• c) assume the auditor takes a sample of 150, what is the probability that less than 5 will contain errors?
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