Use the Multiplication Rule for Independent Events

question 176

Multiple Choice

Use the Multiplication Rule for Independent Events
-CampusFest is a student festival where local businesses come on campus to sell their goods to students at vastly reduced prices. As part of a give-away promotion, a local cellular phone company gave away 500 cellular phones to students who signed up for their calling service. Unbeknownst to the company is that 70 of these cellular phones were faulty and will cause a small explosion when dialed outside the local calling area. Suppose you and your roommate each received one of the giveaway phones. Find the probability that both of you received faulty phones.

• A) 0.01936
• B) 0.0196
• C) 0.28
• D) 0.12064

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Definitions:

Law of Comparative Advantage

The principle that countries gain by producing goods and services for which they have a lower opportunity cost compared to other countries.

Specialization

A strategy where individuals or entities focus on producing a limited range of goods or services, enhancing efficiency and expertise in their domain.

Exchange

The act of trading goods, services, or currencies between two or more parties.

Trading Partners

Countries, entities, or individuals that exchange goods, services, or resources among each other.