A Machine Has 9 Identical Components Which Function Independently

question 77

Multiple Choice

A machine has 9 identical components which function independently. The probability that a component will fail is 0.2. The machine will stop working if more than three components fail. Find the probability that the machine will be working.

• A)0.086
• B)0.066
• C)0.980
• D)0.914

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Definitions:

Company Tax Rate

The percentage of profits a company is required to pay to the government as tax.

Business Combination Valuation Entries

Journal entries that record the valuation of assets, liabilities, and contingent liabilities at fair value in a business combination.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's economic value.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net assets, representing the value of the brand, customer relationships, and other intangible aspects.