1 It Is Generally Believed That Electrical Problems Affect About

question 61

Essay

1. It is generally believed that electrical problems affect about 14% of new cars. An
automobile mechanic conducts diagnostic tests on 128 new cars on the lot.
a. Describe the sampling distribution for the sample proportion by naming the model and
telling its mean and standard deviation. Justify your answer.
b. Sketch and clearly label the model.
c. What is the probability that in this group over 18% of the new cars will be found to have
electrical problems?

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or shares of stock.

Firm Value

The total value of a company, determined by its assets, earnings, cash flow, and market perception.