Circuit Boards for Wireless Telephones Are Etched, in an Acid

question 84

Multiple Choice

Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards.A sample of seven boards is randomly selected from each lot for inspection.A batch contains two defective boards; and x is the number of defective boards in the sample.P(x=1) is _______.

• A)0.1315
• B)0.8642
• C)0.0042
• D)0.6134
• E)0.6789

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Definitions:

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large, as a result of an economic transaction.

Socially Optimal Level

The socially optimal level is the quantity of production or consumption where the marginal social cost equals the marginal social benefit, maximizing overall welfare.

Policymakers

Individuals or groups responsible for making decisions and establishing regulations that guide the economic, social, and political governance of a society.

Marginal Benefit

The plus in satisfaction or usefulness someone gets by consuming an extra unit of a given product or service.