The Following Table Describes the Results of Roadworthiness Tests of Ford

question 16

Multiple Choice

The following table describes the results of roadworthiness tests of Ford Focus cars that are three years old (based on data from the Department of Transportation) . The random variable x represents the number of cars that failed among six that were tested for roadworthiness:
$\begin{array} { | c | c | } \hline \boldsymbol { x } & \boldsymbol { P } ( \boldsymbol { x } ) \\\hline 0 & 0.377 \\\hline 1 & 0.399 \\\hline 2 & 0.176 \\\hline 3 & 0.041 \\\hline 4 & 0.005 \\\hline 5 & 0 + \\\hline 6 & 0 + \\\hline\end{array}$
Is the probability of getting three or more cars that fail among six cars tested significant, Determined by a cutoff value of 0.05?

• A) Yes
• B) No

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Definitions:

Sales Revenue

Represents the total amount of money generated from the sale of goods or services by a company before any costs or expenses are deducted.

Operating Expenses

Regular costs for operating a business, including rent, utilities, payroll, and materials, but excluding costs associated with the production of goods sold.

Corporate Tax Rate

The percentage of a corporation's taxable income that it must pay to the government as tax.

Earnings Per Share

A financial ratio that measures the amount of net income earned per share of stock outstanding.