Question

According to Marsha Bertrand’s book “Fraud!: How to Protect Yourself from Schemes, Scams, and Swindles”, the most common hook in franchise fraud is earnings misrepresentation. In the early 1990s, Tower Cleaning Systems, a commercial cleaning franchisor, promised potential franchisees that they'd have revenues normally distributed with a mean of $9,500 and a standard deviation $1200 per month. The company, however, provided no documentation to back that up. You, as a forensic accountant, wanted to justify this claim and collected some data from their current franchisees. The data indicated the following:

Revenue Amount (bins) #	# of Franchisees Less than
Less than $8,000	22
Between $8,000 and $9,000	25
Between $9,000 and $10,000	34
More than $10,000	28

Calculate in excel and show the formulas in excel.

Answer 1