A Company Has 2 Machines That Produce Widgets

question 60

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. Given a randomly chosen
Widget was tested and found to be defective, what is the probability it was produced by the new
Machine?

• A) 0.08
• B) 0.15
• C) 0.489
• D) 0.511

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Definitions:

Working Papers

Working papers are documents prepared or obtained by auditors as part of their audit process, documenting the evidence and rationale for their conclusions.

Surrender

The act of giving up something, especially legal rights or claims, to another party.

Court Orders

Legal commands issued by a court or judge, requiring a person or entity to do or cease doing a specific action.

Common Law Fraud

A deceptive practice that involves making false representations of fact with the intention of inducing someone to part with something of value or to surrender a legal right.