A Firm Claims That Only 10% of Its Accounts Receivables

question 81

Short Answer

A firm claims that only 10% of its accounts receivables are over 30 days past due.The bank that supplies working capital or interim loans to the firm is suspect of the figure and accordingly takes a random sample of 100 accounts of the firm.Find the probability that the sample proportion,p,will be:
A)between 9 and 10%.
B)within 2% points of the true proportion.

• A)between 9 and 10%.
• B)within 2% points of the true proportion.

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Definitions:

Obligee

A person or entity that is owed a duty or performance under a legal agreement or contract.

Obligor

An obligor is a person or entity legally bound to provide a payment, service, or other benefit to another party (the obligee) under the terms of a contract or legal agreement.

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain kinds of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjuries.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence that contradicts or adds to the written terms of a final contract.