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Question: Suppose that in the bookkeeping operation of a large corporation the probability of a recording error on any one billing is .005. Suppose the probability of a recording error from one billing to the next is constant, and 1,000 billings are randomly sampled by an auditor.

a. What is the probability that fewer than four billings contain a recording error?

b. What is the probability that more than 10 billings contain a billing error?

c. What is the probability that all 1,000 billings contain no recording errors?

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