To check the Ace company's claim that the total of their 2,400 accounts receivable was $1,080,000 and that the standard deviation of the individual accounts was $ 200 the external auditor took a sample of 25 accounts which totalled $9,750.
a) If the company's report is correct, what is the probability that the average balance of an account in the sample is $383 or less?
b) If the total of the accounts receivable is only $1,000,000 (but the standard deviation was correct), what is the probability the total of the sample would be less than $9,750