A Supermarket Claims That Their Checkout Scanners Correctly Price 99

question 14

Multiple Choice

A supermarket claims that their checkout scanners correctly price 99.8% of the items sold. How many items would you expect to buy, on average, to find one that scans incorrectly?

• A) 200
• B) 998
• C) 99.8
• D) 2
• E) 500

---

Definitions:

Reverse Stock Split

A reverse stock split is a consolidation of shares that decreases the total number of outstanding shares and increases the share price proportionately.

Market Value

The existing price for buying or selling an asset or service in the marketplace.

Retained Earnings

The portion of a company's profits that are kept and not paid out as dividends to shareholders, often reinvested into the business.

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.