A government tax auditor is examining the books of a large auto-wrecking yard. Auto-wreckers buy cars that have been in collisions severe enough to render the car unfit. They then remove parts that are in good working order and sell them to repair facilities. The auditor believes that some expensive parts are sold for cash that is not reported on the firm’s tax return. The auditor notes that the records indicate that a total of 2,453 engines have been removed from wrecks and the serial numbers recorded. She randomly samples 80 serial numbers and determines whether they are in inventory.

Question

A government tax auditor is examining the books of a large auto-wrecking yard.  Auto-wreckers buy cars that have been in collisions severe enough to render the car unfit.  They then remove parts that are in good working order and sell them to repair facilities.  The auditor believes that some expensive parts are sold for cash that is not reported on the firm’s tax return.  The auditor notes that the records indicate that a total of 2,453 engines have been removed from wrecks and the serial numbers recorded.  She randomly samples 80 serial numbers and determines whether they are in inventory.