Your Company's Internal Auditor Believes That 10 Percent of the Company's

question 5

Multiple Choice

Your company's internal auditor believes that 10 percent of the company's invoices contain errors.To check this theory,20 invoices are randomly selected,and 5 are found to have errors.What is the probability that of the 20 invoices selected,5 or more would contain errors if the theory is valid?

• A).0433
• B).0319
• C).9567
• D).8660

---

Definitions:

Capacity Utilization Rate

A metric used to measure the rate at which potential output levels are being met or used.

Interest Rate

The percentage at which interest is charged or paid on amounts of money, reflecting the price of credit or returns on investment.

Personal Property

Movable property that is not attached to real estate, including vehicles, furniture, and personal belongings.

U.S. Government Bonds

Debt securities issued by the United States Department of the Treasury to fund federal government operations and obligations, considered low-risk investments.