TABLE 6-7 A Company Has 125 Personal Computers.The Probability That Any One

question 26

Multiple Choice

TABLE 6-7
A company has 125 personal computers.The probability that any one of them will require repair on a given day is 0.15.
-Referring to Table 6-7,which of the following is one of the properties required so that the binomial distribution can be used to compute the probability that no more than 2 computers will require repair on a given day?

• A)The probability that a computer that will require repair in the morning is the same as that in the afternoon.
• B)A randomly selected computer on a given day will either require a repair or will not.
• C)The number of computers that will require repair in the morning is independent of the number of computers that will require repair in the afternoon.
• D)The probability that two or more computers that will require repair in a given day approaches zero.

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Definitions:

Administrative Costs

Expenses that are not directly tied to specific business operations, including office expenses, salaries of non-production employees, and legal fees.

Earthquake Insurance

Insurance coverage specifically designed to protect a property owner against damages resulting from an earthquake.

Risk Aversion

A preference for certainty over uncertainty, with individuals choosing investments that offer a lower potential return with known risks over riskier ones.

Expected Loss

The calculated financial loss anticipated from an investment or action, considering the probability and magnitude of losses.