Last Year, a Manufacturer Produced 450,000 DVD Players $4 \%$ Were Defective

question 3

Multiple Choice

Last year, a manufacturer produced 450,000 DVD players. Of these, approximately $4 \%$ were defective. Assume that a simple random sample of $n = 170$ players is drawn. Use the Poisson approximation to the binomial distribution to compute the probability that exactly fourteen of the 170 DVD players were defective.

• A) 0.0119
• B) 0.0824
• C) 0.0026
• D) 0.0058

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Definitions:

Process Costing

An accounting methodology used for homogenous products, where costs are accumulated to produce an average cost per unit across the entire production process.

Assembly Department

A section within a manufacturing facility where components are assembled into final products.

Equivalent Units

A term used in cost accounting to express the amount of work done on partially finished goods in terms of fully completed units.

Work In Process

Inventory that includes items that are in the process of being manufactured but are not yet finished goods.