Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 33

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution. Two percent of hair dryers produced in a certain plant are defective. Estimate the probability that of 10,000 randomly selected hair dryers, at least 219
Are defective.

• A) 0.0823
• B) 0.9066
• C) 0.0869
• D) 0.0934

Identify what constitutes scienter in the context of accounting fraud and malpractice.

Recognize an auditor's responsibilities upon discovering illegal activities during an audit.

Evaluate the liability issues of accountants under the 1933 Securities Act regarding misleading registration statements.

List the services that are prohibited for accounting firms to perform for audit clients under the Sarbanes-Oxley Act.

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Definitions:

Endoderm

The innermost layer of cells or tissue of an embryo in early development that gives rise to the lining of the digestive and respiratory systems.

Rubella

A contagious viral disease, also known as German measles, that can cause severe birth defects if contracted by a pregnant woman.

Diethylstilbestrol

A synthetic estrogen that was prescribed between the 1940s and 1970s to prevent pregnancy complications, later found to cause health issues in exposed children.

Teratogens

Agents or factors that can cause developmental abnormalities or birth defects in an embryo or fetus.