Solution) Manager of billing, Fred Sharpie, at St. Abundius Hospital[1] in Prescott has been worried about the
Question: Manager of billing, Fred Sharpie, at St. Abundius Hospital[1] in Prescott has been worried about the number of billing errors that have been made at the hospital. Fried said, “You know that the feds aren’t paying for our mistakes any more – that’s just not fair. Why should we get stuck with the bills?” (Fred has an unusual sense of ethics, doesn’t he?) Using the binomial distribution answer the following questions about a random sample of 25 bills that Fred has drawn from his billing population.
A) The probability of 5 bills will be without any error if the probability of success = 0.40.
B) The probability of at least 7 bills will be without any error if the probability of success = 0.25.
C) The probability of between 8 and 12 bills will be without any error if the probability of success = 0.35.
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