The true proportion of accounts receivable with some kind of error is 0.02 for Venal Enterprises.If an auditor randomly samples 50 accounts receivable,which is the Excel probability that fewer than two will contain errors?
A)=BINOM.DIST(2,50,0.02,1)
B)=BINOM.DIST(1,50,0.02,1)
C)=BINOM.DIST(2,50,0.02,0)
D)=BINOM.DIST(1,50,0.02,0)

Question

Quizplus · Accepted Answer

The correct function to find the probability that fewer than two accounts contain errors is BINOM.DIST(1,50,0.02,1), which calculates the cumulative probability for 0 and 1 errors.

The True Proportion of Accounts Receivable with Some Kind of Error