Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 94

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-A product is manufactured in batches of 120 and the overall rate of defects is 5%. Estimate the probability that a randomly selected batch contains more than 6 defects.

• A)0.4168
• B)0.4641
• C)0.5871
• D)0.0832

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Definitions:

Consumption

The act of using up goods and services to satisfy human needs and wants, considered a principal component of GDP.

Durable Goods

Goods that are intended to last for a long period of time, such as cars, appliances, and furniture, typically requiring more significant investment than non-durable goods.

Nondurable Goods

Items that are consumed or are only useable for a short period before they need replacement due to wear or consumption.

Services

Tasks or activities performed by individuals or companies for the benefit of others, typically in exchange for payment, and are intangible in nature.