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A Hospital-Billing Auditor Has Been Inspecting Patient Bills

Question 113

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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 200 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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0.16 ± (3)...

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