The Producers of the Yugo Automobile Periodically Inspect Samples of 80

question 54

Multiple Choice

The producers of the Yugo automobile periodically inspect samples of 80 hoods for dents and scratches. A single flaw in a hood renders it unsuitable for installation in one of their fine automobiles. The results of the last 10 samples are shown. What sample is out of control?

• A) 1
• B) 3
• C) 5
• D) 4
• E) 10

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Definitions:

Entity's Profits

The financial gain that remains after subtracting all expenses, taxes, and costs from a company's revenue.

Residual Interest

The interest remaining in a trust or estate once all prior obligations, claims, or interests have been satisfied.

Equity Instrument

Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Derivative Instrument

A financial contract whose value is derived from the value of an underlying asset, index, or rate.