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:

Paid-in Capital

Funds raised by a company through the sale of common or preferred stock.

Preferred Stock

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and typically has no voting rights.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents the ownership interest of the shareholders.