A hospital-billing auditor has been inspecting patient bills. While almost all bills contain some errors, the auditor is looking now for large errors (errors in excess of $250). Among the last 100 bills inspected, the defect rate has been 17%. Calculate the upper and lower limits for the billing process for 99.7% confidence.

Defect Rate

The proportion of defective items or errors found in a batch of products, used as a measure of quality in manufacturing processes.

Confidence

A feeling or belief that one can rely on someone or something; firm trust.

Billing Process

The process of issuing invoices to customers for goods or services, tracking the payment status, and managing receivables.