1. ## Random Variables

In order to verify the accuracy of their financial accounts, companies use auditors on a regular basis to verify accounting entries. The company's employees make erroneous entries 2% of the time. Suppose that an auditor randomly checks five entries. Let Y be the number of errors detected by the auditor.

a) What are the possible values of the random variable Y?
b) Find the probability function for Y.
c) Find the probability distribution function for Y.

a) Y = {0,1,2,3,4,5}.
b) y 0 1 2 3 4 5
p(y)

I am stuck on finding the probability function for Y. Do I use the formula C(6,y)(0.02)^y(0.98)^(n-y)? Find the combination of six possibilities chosen y at a time, then multiply that by (0.02) raised to the y power, then multiply that by 0.98 raised to the (n-y).

2. ## Re: Random Variables

Originally Posted by lovesmath
In order to verify the accuracy of their financial accounts, companies use auditors on a regular basis to verify accounting entries. The company's employees make erroneous entries 2% of the time. Suppose that an auditor randomly checks five entries. Let Y be the number of errors detected by the auditor.

a) What are the possible values of the random variable Y?
b) Find the probability function for Y.
c) Find the probability distribution function for Y.

a) Y = {0,1,2,3,4,5}.
b) y 0 1 2 3 4 5
p(y)

I am stuck on finding the probability function for Y. Do I use the formula C(6,y)(0.02)^y(0.98)^(n-y)? Find the combination of six possibilities chosen y at a time, then multiply that by (0.02) raised to the y power, then multiply that by 0.98 raised to the (n-y).
The number of errors would have a binomial distribution B(5,0.2)

CB

3. ## Re: Random Variables

Why is the binomial distribution B(5, 0.2) instead of B(6, 0.2)? Does that mean part a should be Y = {1,2,3,4,5}? I thought there had to be an option of getting 0 errors.

4. ## Re: Random Variables

Originally Posted by lovesmath
Why is the binomial distribution B(5, 0.2) instead of B(6, 0.2)? Does that mean part a should be Y = {1,2,3,4,5}? I thought there had to be an option of getting 0 errors.
5 is the number checked

Binomial distribution - Wikipedia, the free encyclopedia

CB

,

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### In order to identify the accuracy of financial accounts ,companies use auditors on regular basis to verify accounting entries .The companies employees make eronious entries 5% of the time .Suppose that an auditor ,randomly checks 3 entries.Find the probab

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