In a Production Run of 300 Units, There Are Exactly

question 20

Essay

In a production run of 300 units, there are exactly 20 defective items and 280 good items.
(a)What is the probability that a randomly selected item is defective?
(b)If two items are sampled without replacement, what is the probability that both are good?
(c)If two items are randomly sampled without replacement, what is the probability that the first is good but the second is defective?

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to entry, and perfect information among buyers and sellers.

Close Substitutes

Products or services that can easily replace each other in the eyes of consumers due to their similar functions or characteristics.

Imperfectly Competitive

A market structure where individual producers have some control over the price and supply of products, as opposed to perfect competition where no single producer can influence the market.

Market Price

The prevailing rate at which a commodity or service is available for purchase or sale in a specific market.