A Lot Contains 12 Items, and 4 Are Defective

question 41

Multiple Choice

A lot contains 12 items, and 4 are defective. If three items are drawn at random from the lot, what is the probability they are not defective?

• A) 0.3333
• B) 0.2545
• C) 0.5000
• D) 0.2963
• E) 0.0370

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Definitions:

Cash Cycle

The period between the acquisition of inventory by a business and the collection of accounts receivable generated by the sale of that inventory.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a particular period, indicating the efficiency of inventory management.

Accounts Payable

Accounts payable is an accounting term for the outstanding bills or debts a company owes to suppliers or vendors for goods or services received.

Operating Cycle

The operating cycle is the amount of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from these sales, reflecting the efficiency of a company's operations.