In a Batch of 8,000 Clock Radios 9% Are Defective

question 152

Multiple Choice

In a batch of 8,000 clock radios 9% are defective. A sample of 15 clock radios is randomly selected without replacement from the 8,000 and tested. The entire batch will be rejected if at least one of those tested is defective. What is the probability that the entire batch will be rejected?

• A)0.243
• B)0.0900
• C)0.0667
• D)0.757

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Definitions:

Marginal Revenue

The profit made by selling one more unit of a product or service.

Average Revenue

The amount of revenue generated per unit of output sold, calculated by dividing total revenue by the quantity sold.

Nondiscriminating Pure Monopolist

A market player who is the sole seller of a product or service but charges a single price to all customers without price discrimination.