A Package Delivery Service Claims That No More Than 5

question 13

Multiple Choice

A package delivery service claims that no more than 5 percent of all packages arrive at the address late. Assuming that the conditions for the binomial hold, if a sample of size 10 packages is randomly selected, and the 5 percent rate holds, what is the probability that exactly 2 packages in the sample arrive late?

• A) 0.0746
• B) 0.9884
• C) 0.2347
• D) 0.0439

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Definitions:

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing strategies.

Economies Of Scale

Cost advantages that a business achieves due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Differentiation

A strategy employed by businesses to distinguish their products or services from those of competitors, often through unique features, branding, or quality.