The Probability That a Particular Brand of Smoke Alarm Will

question 19

Multiple Choice

The probability that a particular brand of smoke alarm will function properly and sound an alarm in the presence of smoke is 0.8. A batch of 100,000 such alarms was produced by independent production lines. Which of the following distributions would you use to figure out the probability that at least 90,000 of them will function properly in case of a fire?

• A) normal distribution
• B) Poisson distribution
• C) uniform distribution
• D) hypergeometric distribution

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Definitions:

Turnover

In a business context, this term can refer to the rate at which inventory is sold and replaced or the rate at which employees leave and are replaced within a company.

Return on Investment

A financial metric used to measure the profitability or efficiency of an investment, calculated by dividing net profit by the initial cost of the investment.

Minimum Required Return

This refers to the smallest expected or necessary rate of return on an investment to make it worthwhile.

Transfer Price

The amount levied on goods or services traded across sections or sister companies within the same organization.