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:

Capital Gain

The profit earned from the sale of an asset when its selling price exceeds its purchase price.

High-duration

Describes bonds or other fixed-income securities that have high sensitivity to changes in interest rates, usually because they have a long time until maturity.

Low-duration

Refers to investments that have a short time until maturity, typically associated with lower interest rate risk.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, expressed in years.