Use the Following Table to Answer the Question(s) Below

question 58

Multiple Choice

Use the following table to answer the question(s) below.

-A manufacturer of FAX machines checks samples of 50 units for functionality at the conclusion of the assembly process. The results of 10 samples are shown. What is the average proportion defective?

• A) 0.07
• B) 0.14
• C) 0.21
• D) 0.28
• E) 0.35

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Definitions:

Dollar-Weighted Return

A measure of an investment's performance that takes into account the timing and amount of all cash inflows and outflows.

Geometric Average Return

The average rate of return on an investment that is calculated by multiplying n variables and then taking the n-th root of the product.

Arithmetic Average Return

The simple mean of a set of returns, calculated by summing the returns over a period and dividing by the number of periods.

Nominal Return

The amount of money gained or lost on an investment, without adjusting for inflation, as opposed to the real return which is adjusted for inflation.