The Probability That a Particular Brand of Smoke Alarm Will

question 25

Multiple Choice

The probability that a particular brand of smoke alarm will function properly and sound an alarm in the presence of smoke is 0.8. You have 5 such alarms in your home and they operate
Independently. Which of the following distributions would you use to determine the probability
That all of them will function properly in case of a fire?

• A) Binomial distribution.
• B) Poisson distribution.
• C) Normal distribution.
• D) Hypergeometric distribution.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on quality, brand, and price.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a loss of total societal welfare.

Economic Profits

Profits exceeding the opportunity costs of a firm's resources, indicating it is surpassing the next best alternative.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for slight control over prices.