Use the Normal to Model the Distribution of Sample Proportions

question 17

Multiple Choice

Use the Normal to model the distribution of sample proportions.
-It is generally believed that electrical problems affect about 14% of new cars. An
Automobile mechanic conducts diagnostic tests on 128 new cars on the lot. What is the
Probability that in this group over 18% of the new cars will be found to have electrical
Problems?

• A) 0.0985
• B) 0.197
• C) 0.9015
• D) 0.803
• E) 0.500

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Definitions:

GAAP

Generally Accepted Accounting Principles; a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Accounting Standards

Formal guidelines and principles designed to improve the transparency and consistency of financial reporting and accounting practices.

Financial Statements

Financial statements are formal records of an entity's financial activities and position, including the balance sheet, income statement, and cash flow statement.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the United States.