Use Bayes' Rule to Find the Indicated Probability

question 56

Multiple Choice

Use Bayes' rule to find the indicated probability.
-Two shipments of components were received by a factory and stored in two separate bins.Shipment I has 2% of its contents defective,while shipment II has 5% of its contents defective.If it is equally likely an employee will go to either bin and select a component randomly,what is the probability that a defective component came from shipment II?

• A)0.5
• B)0.333
• C)0.714
• D)0.25

Understand the calculation of net asset value (NAV) and how it affects mutual fund transactions.

Recognize the tax implications and potential tax liabilities associated with investing in mutual funds.

Differentiate between open-end and closed-end funds as well as exchange-traded funds (ETFs).

Understand the regulatory requirements and disclosures mandated by the SEC for mutual funds.

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Definitions:

4WD

Four-wheel drive, a system that powers all four wheels of a vehicle simultaneously for better traction.

Linear Rate

In the context of springs, a linear rate refers to a constant rate of compression or extension, meaning the force required to compress or extend the spring is consistent throughout its movement.

Variable Rate

An interest or finance charge rate that can change over the period of the loan or credit agreement, often tied to an index or benchmark.

Coil Springs

Mechanical devices that can compress or extend to absorb impact or maintain force between contacting surfaces.