An Auditor Knows from Past History That the Average Accounts

question 63

Short Answer

An auditor knows from past history that the average accounts receivable for a company is $521.72, with a standard deviation of $584.64. If the auditor takes a simple random sample of 100 accounts, what is the probability that the mean of the sample will be within $120 of the population mean?

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Definitions:

Synthetic Lubricants

Lubricants made from chemically engineered substances that provide superior performance and protection compared to conventional oils.

Extended Oil Drain Intervals

Practices or technologies that allow for longer periods between oil changes in engines or machinery, enhancing efficiency and reducing maintenance.

OEMs

Stands for Original Equipment Manufacturers, which are companies that produce parts and equipment that may be marketed by another manufacturer.

Differential Carriers

The housing that contains the differential gear mechanism, supporting and enabling the differential to divide torque between wheels.