Use the Multiplication Rule for Independent Events

question 117

Multiple Choice

Use the Multiplication Rule for Independent Events
-A county welfare agency employs 26 welfare workers who interview prospective food stamp recipients. Periodically, the supervisor selects, at random, the forms completed by two workers to audit for illegal deductions. Unknown to the supervisor, six of the workers have regularly been giving illegal deductions to applicants. What is the probability both workers chosen have been giving illegal deductions

• A) 0.046
• B) 0.053
• C) 0.055
• D) 0.044

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Definitions:

Diminishing Marginal Product

The principle stating that as one inputs more of a factor of production while holding other inputs constant, the added output produced from each additional unit of the variable input eventually decreases.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Marginal Cost

The added expense incurred by creating one more unit of a product or service.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.