Question Solved1 Answer A certified public accountant (CPA) has found that eight out of ten company audits contain substantial errors. If the CPA audits a series of company accounts, compute the following probabilities. (Round your answers to four decimal places.) (a) What is the probability that the first account containing substantial errors is the third one to be audited? (b) What is the probability that the first account containing substantial errors will occur on or after the third audited account? Need Help? Read Watch Tato Tutor

CBKWHJ The Asker · Probability and Statistics

Transcribed Image Text: A certified public accountant (CPA) has found that eight out of ten company audits contain substantial errors. If the CPA audits a series of company accounts, compute the following probabilities. (Round your answers to four decimal places.) (a) What is the probability that the first account containing substantial errors is the third one to be audited? (b) What is the probability that the first account containing substantial errors will occur on or after the third audited account? Need Help? Read Watch Tato Tutor
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Transcribed Image Text: A certified public accountant (CPA) has found that eight out of ten company audits contain substantial errors. If the CPA audits a series of company accounts, compute the following probabilities. (Round your answers to four decimal places.) (a) What is the probability that the first account containing substantial errors is the third one to be audited? (b) What is the probability that the first account containing substantial errors will occur on or after the third audited account? Need Help? Read Watch Tato Tutor
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Solution:We are given:p=(8)/(10)=0.8q=1-p=1-0.8=0.2a) We have to find:P(x=3)Using the Geometric distribution, we have:P(x=3)=0.8 xx0.2^(3-1)=0.032b) We have to find:P(x >= 3)Using the complementary law of probability, we have:P(x >= 3)=1-P(x <= 2)&#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;&#160; &#160;=1-(P(x=1)+P(x=2))&#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;&#160; &#160;=1-(0.8 xx0.2^(1-1)+0.8 xx0.2^(2-1))&#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;&#160; &#160;=1-(0.8+0.16)&#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;& ... See the full answer