A few days ago
Anonymous

Second Statistics Help?

The MBI Company found that at the end of each month, 2.7% of its two million accounting entries contained errors. Today, one operator has made 56 computer entries.

Determine the mean and standard deviation of errors in accounting entries.

Mean =

SD =

Though the answer would be nice, am more interested in how to do the actual calculation…

Thanks in advance…

Top 2 Answers
A few days ago
Merlyn

Favorite Answer

This is how I read the question, there are 2 000 000 entries and 2.7% have errors. Forget about the operator, don’t need that info.

Let X be the number of entries with an error. X has the binomial distribution. n, the number of trials is 2 000 000 and the success probability, the probability that an entry has an error is 0.027.

the mean of the binomial is n * p = 2 000 000 * 0.027 = 54000

the variance of the binomial is n * p * (1-p) = 2 000 000 * 0.027 * 0.973 = 52542

the standard deviation is the square root of the variance = 229.22

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now if you have to do any calculations to find probabilities it would be nice to use the normal approximation to the binomial.

if you have n * p > 10 and n* (1-p) > 10 then the binomial can be approximated by the normal distribution with mean n*p and variance n*p*(1-p)

there is also a continuity correction that you must use with this. Please let me know if you want more info on this topic.

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A few days ago
Anonymous
please make your own homework…
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