A Hospital-Billing Auditor Has Been Inspecting Patient Bills

question 8

Essay

A hospital-billing auditor has been inspecting patient bills.While almost all bills contain some errors,the auditor is looking now for large errors (errors in excess of $250).Each day last week,the auditor examined 100 bills and found an average defect rate of 16%.Calculate the upper and lower limits for the billing process for 99.73% confidence.

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