A Batch of 50 Parts Contains 6 Defects

question 79

Multiple Choice

A batch of 50 parts contains 6 defects. If two parts are drawn randomly, one at a time, and tested, what is the probability that both parts are defective?

• A) 0.014
• B) 0.012
• C) 0.120
• D) 0.102
• E) 0.222

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Definitions:

Direct Labor Cost

Wages that are paid to workers who are directly involved in the production of goods or services.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed overhead—in the cost of a product.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding taxes and interest expenses.

Direct Labor Cost

The total cost of workforce directly involved in the production of goods or services, excluding indirect labor such as administration.