The Following Table Describes the Results of Roadworthiness Tests of Ford

question 15

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: $$\begin{array} { | c | c | } \hline \boldsymbol { x } & \boldsymbol { P } ( \boldsymbol { x } ) \\\hline 0 & 0.377 \\\hline 1 & 0.399 \\\hline 2 & 0.176 \\\hline 3 & 0.041 \\\hline 4 & 0.005 \\\hline 5 & 0 + \\\hline 6 & 0 + \\\hline\end{array}$$ Find the probability of getting three or more cars that fail among six cars tested.

• A)0.005
• B)0.046
• C)0.048
• D)0.222

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Definitions:

Marginal Cost

The price associated with the creation of one more unit of a product or service.

Average Total Cost

The per-unit cost of production, calculated by dividing the total cost of production by the quantity of output produced.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Short-run Marginal Cost Curve

A curve that shows the change in total cost associated with producing one more unit of output in the short term.