An evaluation of a small business by an accounting firm either reveals a problem

Question

An evaluation of a small business by an accounting firm either reveals a problem with the accounts or it doesn't reveal a problem. Also, the evaluation is either done accurately or incorrectly. The probability that the evaluation is done accurately is 0.85. Furthermore, the probability that the evaluation is done incorrectly and that it reveals a problem is 0.10. If the probability that the evaluation is done accurately and it does not reveal a problem is 0.25, what is the probability that the evaluation does not reveal a problem?

Explanation / Answer

Since sum of all probabilites is 1 , the required probability is 0.20

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.