TABLE 5-5 from an Inventory of 48 New Cars Being Shipped to Shipped

question 151

Short Answer

TABLE 5-5
From an inventory of 48 new cars being shipped to local dealerships, corporate reports indicate that 12 have defective radios installed.
-Referring to Table 5-5, what is the probability out of the 8 new cars it just received that, when each is tested, exactly half of the cars have defective radios?

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Definitions:

Implied Warranty

A legal assumption that goods are fit for the purpose for which they were sold, even if not explicitly stated.

Merchantability

A warranty that a product sold will meet reasonable expectations of the buyer, including that it is of average acceptable quality and is fit for the purpose for which it is sold.

Defective

Pertaining to a lack of perfection, flaws, or deficiencies in a product, service, or legal document that impair its quality, functionality, or legality.

Security Interest

Any interest “in personal property or fixtures which secures payment or performance of an obligation” [UCC 1–201(37)].