What Type of Probability Distribution Will Most Likely Be Used

question 163

Multiple Choice

What type of probability distribution will most likely be used to analyze the number of cars with defective radios in the following problem?
From an inventory of 48 new cars being shipped to local dealerships, corporate reports
Indicate that 12 have defective radios installed. The sales manager of one dealership wants to
Predict the probability out of the 8 new cars it just received that, when each is tested, no more
Than 2 of the cars have defective radios.

• A) binomial distribution.
• B) Poisson distribution.
• C) hypergeometric distribution.
• D) none of the above.

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Definitions:

Supplier Power

The ability of providers of goods or services to drive up prices and dictate terms because of their importance or scarcity.

Critical Inputs

Essential resources or factors required in the production process or for the delivery of a service that significantly impact the quality and output of the final product.

Homogenous Inputs

Inputs or resources used in production that are uniform in nature and interchangeable, contributing to consistent product quality.

High Barriers

Refers to obstacles that prevent new competitors from easily entering an industry or area of business.