The Internal Auditing Staff of a Local Manufacturing Company Performs

question 7

Multiple Choice

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are more than 90 days overdue (delinquent) . The historical records of the company show that over the past 8 years, the average has been that 13 percent of the accounts have been delinquent. For this quarter, the auditing staff randomly selected 250 customer accounts. What is the probability that no more than 40 accounts will be classified as delinquent?

• A) 92.08%
• B) 42.07%
• C) 7.93%
• D) 40.15%
• E) 90.15%

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Definitions:

Positive Reinforcement

A behavioral concept where a desirable stimulus is introduced following a behavior, increasing the likelihood that the behavior will occur again.

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus to decrease the likelihood of a behavior being repeated.

Positive Punishment

A method in behaviorism that involves the addition of an unfavorable outcome in order to decrease the likelihood of a behavior occurring in the future.

Negative Reinforcement

The process of increasing a behavior by removing or avoiding a negative outcome or stimulus.