A Company Has 2 Machines That Produce Widgets

question 51

Multiple Choice

A company has 2 machines that produce widgets.An older machine produces 23% defective widgets,while the new machine produces only 8% defective widgets.In addition,the new machine produces 3 times as many widgets as the older machine does.Given a randomly chosen widget was tested and found to be defective,what is the probability it was produced by the new machine?

• A)0.08
• B)0.15
• C)0.489
• D)0.511

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Definitions:

Relative Position

The placement or rank of something in relation to others based on a specific criteria.

Vertical Analysis

A technique for evaluating financial statement data that expresses each item within a financial statement as a percentage of a base amount.

Net Income

The net income of a business following the subtraction of all costs and taxes from its revenue.

Net Sales

The revenue a company earns from goods sold or services provided after returns, allowances for damaged goods, and discounts are subtracted.