A Company Has 2 Machines That Produce Widgets

question 24

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. What is the probability
That a randomly chosen widget produced by the company is defective?

• A) 0.078
• B) 0.1175
• C) 0.156
• D) 0.310

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Definitions:

Stability Strategy

A business approach aimed at maintaining current operations and focusing on consistent performance and steady growth, rather than rapid expansion or restructuring.

Current Businesses

Entities actively engaged in commercial, industrial, or professional activities at the present time.

Existing Core

Refers to the established, central competencies or capabilities within an organization that are crucial to its success and competitiveness.

Mergers

The combination of two or more companies into a single entity, often to enhance competitive positioning or to achieve synergy.