Regulators have found that 23 of the 68 investment companies that filed for bankruptcy in the past five years failed because of fraud, not for reasons related to the economy. Suppose that nine additional firms will be added to the bankruptcy rolls during the next quarter. How many of those failures are likely to be attribute to fraud?
Total No# of co#’s filed for bankruptcy = 68
<br>Total No# of Frauds = …
The expert examines the random variable for expected values problem.