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Quiz 3 sp 08 KEY - c.4532 d.5871 e.7734 1 f.9604 4 An audit...

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ECON 2843 Name KEY Quiz 3 Spring 2008 ID # Students must show all work on problems that involve calculation. Questions 1 and 2 refer to the following. Toby’s Trucking Company determined that the distance traveled per truck per year is normally distributed with a mean of 50,000 miles and a variance of 144,000,000 miles 2 . 1. What is the probability that a randomly selected truck will travel less than 60,000 miles per year? .7967 2. What amount for annual distance traveled represents the first quartile of the distribution? 41,900 3. The breaking strength of plastic bags used for packaging produce is normally distributed with a variance of 2.25 (lbs/sq. inch) 2 If 33 bags are randomly selected, what is the probability that the sample mean will fall short of the population mean by more than .195 pounds? a. .1133 b. .2266
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Unformatted text preview: * c. .4532 d. .5871 e. .7734 1 f. .9604 4. An audit conducted by the St. Aleanis Hospital has determined 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 .05? Assuming the new improved error rate is correct, then if 240 patient bills are audited, what is the probability that less than 8 of them will contain errors? .1190 5. Refer to question 4. The company must pay $100 for an audit, plus an additional $4.40 for each patient bill that turns out to be incorrect within the audit. What is the probability that the audit will cost between $136 and $160? .5552 2...
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