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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 hospitals 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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This note was uploaded on 04/07/2008 for the course ECON 2843 taught by Professor Hudgins during the Spring '08 term at The University of Oklahoma.
 Spring '08
 HUDGINS

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