ONLY PART E) USING R SOFTWARE FOR e)
A company is said to be out of compliance if more than 8% of allinvoices contain errors, and it is said to be seriously out ofcompliance if more than 12% of all invoices contain errors. Supposean auditor randomly selects a sample of 800 invoices and finds that104 contained errors.
a) Construct a 90% confidence interval for this company’s errorrate.
b) How should the company be rated if statements about being outof compliance or seriously out of compliance require 5% level ofsignificance?
c) What is the probability a company would be rated as seriouslyout of compliance by
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