Historical Data for a Local Manufacturing Company Show That the Average

question 66

Multiple Choice

Historical data for a local manufacturing company show that the average number of defects per product produced is 2. In addition, the number of defects per unit is distributed according to a Poisson distribution. What is the probability that there will be a total of 7 defects on four units?

• A) .6063
• B) .0902
• C) .0034
• D) .1396

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Definitions:

International Transactions

Financial operations that occur across national borders, involving the exchange of goods, services, or capital between countries.

Intermediary

An entity or person that acts as a mediator or link between parties to facilitate a transaction or agreement.