Compute Probabilities Using the General Multiplication Rule
-After Completing an Inventory

question 109

Multiple Choice

Compute Probabilities Using the General Multiplication Rule
-After completing an inventory of three warehouses, a golf club shaft manufacturer described its stock of 12,246 shafts with the percentages given in the table. Suppose a shaft is selected at random from the 12,246 currently in stock, and the warehouse number and type of shaft are observed. Given that the shaft is produced in warehouse 2, find the probability it has an extra stiff shaft. Round your answer to the nearest thousandth.

• A) \(0.303\)
• B) \(0.833\)
• C) \(0.286\)
• D) \(0.35\)

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Definitions:

Perpetual Inventory System

A continuous inventory system is a technique for managing stock that immediately logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management programs.

Purchasing Merchandise Inventory

The process of acquiring goods for resale, including the selection, ordering, and receipt of merchandise.

Recording Process

The systematic method of capturing all relevant financial transactions of a business for accounting and reporting purposes.

Perpetual Inventory System

An inventory management method where records of inventory quantities are updated in real-time after every transaction.