The Internal Auditing Staff of a Local Manufacturing Company Performs

question 105

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)42.07%
• B)92.07%
• C)7.93%
• D)40.15%
• E)90.15%

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Definitions:

Esteem Needs

A human motivational need, as identified by Maslow, involving respect, self-esteem, status, recognition, and freedom.

Praise

The expression of approval or admiration for someone or their actions, often used as a form of encouragement.

Recognition

Recognition involves acknowledging or giving credit to individuals or entities for their achievements, contributions, or status, often serving as a form of reward or appreciation.

Expectancy Theory

A motivational theory suggesting that people will choose how to behave based on their expectations that certain actions will lead to desired outcomes.