The Probability That a Given Computer Chip Will Fail Is

question 104

Multiple Choice

The probability that a given computer chip will fail is .02. Find the probability that of 5 delivered chips, exactly 2 chips will fail.

• A) .9962
• B) .0999
• C) .0038
• D) .0000

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Definitions:

Active Antitrust Perspective

An approach favoring active government intervention to discourage monopolies, promote competition, and regulate anti-competitive practices.

Allocative Efficiency

A state of the market where resources are allocated in a way that maximizes the overall benefit to society, where the price of a good equals the marginal cost of production.

Monopoly Behavior

The actions of a firm that is the sole provider of a good or service, often involving price setting and market control.

Monopoly Structure

A market structure characterized by a single seller that controls the whole industry, leading to a lack of competition and high prices for consumers.