An Electrical Component for One of the Main Products Your

question 82

Multiple Choice

An electrical component for one of the main products your company produces is specified to have an electrical impedance of 2.15 ohms.However, the manufacturing process is not perfect and there is some variation on the actual impedance of these components.A recent statistical study indicated that in fact, the impedances are normally distributed with a mean impedance of 2.15 ohms and a standard deviation of 0.05 ohms.When the impedance exceeds 2.25 ohms, the product malfunctions so that component must be rejected and replaced by one whose impedance is within the acceptable limit.If you need 1350 usable components, how many components should you order?

• A)1608
• B)1422
• C)1421
• D)1417
• E)1384

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Definitions:

Compound Interest

Interest earned on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Bond

A financial instrument in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a specified interest rate.

Semiannual Interest

Interest that is calculated and paid twice a year, typically used in the context of bonds and loans.

Market Rate

The prevailing price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.