The Probability That a Particular Brand of Smoke Alarm Will

question 43

Multiple Choice

The probability that a particular brand of smoke alarm will malfunction in the presence of smoke
Is 0.002.A batch of 100,000 such alarms was produced by independent production lines.Which
Of the following distributions would you use to figure out the probability that at most 5,000 of
Them will malfunction in case of a fire?

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

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Definitions:

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Aggregate Demand

Total need for every type of good and service within an economic system, quantified at a specific price level and during a certain timeline.

Money Supply

The complete volume of monetary resources present in an economy at a specific moment, which comprises cash, coins, and the amounts in checking and savings accounts.

Interest Rate

The percentage charged or paid for the use of money, typically expressed as an annual percentage of the principal.