A Supermarket Claims That Their Checkout Scanners Correctly Price 99

question 7

Multiple Choice

A supermarket claims that their checkout scanners correctly price 99.8% of the items sold. How
Many items would you expect to buy, on average, to find one that scans incorrectly?

• A) 998
• B) 500
• C) 200
• D) 99.8
• E) 2

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Definitions:

Security

A financial asset signifying either an equity stake in a corporation that's publicly traded (known as stock), a debt investment in a company or government (referred to as a bond), or entitlements to ownership through an option.

Put Option

This is a financial deal that permits the carrier to optionally sell a specified volume of an underlying asset at a designated price within an agreed timeframe, without mandatory action.

Seller

An individual or entity that offers goods or services in exchange for payment or other compensation.

Specified Price

A pre-determined price point related to financial and contractual agreements.