The True Proportion of Accounts Receivable with Some Kind of Error

question 28

True/False

The true proportion of accounts receivable with some kind of error is 4 percent for Venal Enterprises. If an auditor randomly samples 50 accounts receivable, it is acceptable to use the normal approximation to estimate the probability that fewer than two will contain errors.

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Definitions:

Displacement

Diverting emotional feelings (usually anger) from their original source to a substitute target.

Learned Helplessness

Passive behavior produced by exposure to unavoidable aversive events.

Pessimistic Explanatory Style

A tendency to explain negative events as being pervasive, permanent, and personal.

Depression

A common mental disorder characterized by persistent sadness, a lack of interest in activities, and a decreased ability to enjoy life.