A Production Process Has Been Producing 10% Defective Items

question 41

Multiple Choice

A production process has been producing 10% defective items. A sample of three items is selected from the production process. What is the probability that all three items are defective?

• A) 0.30
• B) 0.20
• C) 30%
• D) 0.001

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Definitions:

Accounting System Design

The process of defining the structure, components, and processes of an accounting system tailored to meet specific financial reporting and management needs.

Internal Controls

Systems and procedures implemented by a company to ensure the integrity of financial and accounting information.

Information Processing

The collection, manipulation, storage, retrieval, and classification of information.

Revenue Journal

An accounting ledger dedicated to recording sales transactions that generate revenue for a business.