Dell Computers Receives Large Shipments of Microprocessors from Intel Corp

question 104

Multiple Choice

Dell Computers receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of microprocessors that are defective is small. Suppose Dell decides to test five microprocessors out of a shipment of thousands of these microprocessors. Suppose that if at least one of the microprocessors is defective, the shipment is returned. Calculate the probability that the entire shipment will be kept by Dell even though the shipment has 10% defective microprocessors.

• A) 0.3995
• B) 0.3979
• C) 0.5905
• D) 0.4550

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Definitions:

Deceptive Advertising

Marketing practices that mislead or trick consumers into buying or using a product or service through false claims, incomplete information, or other misleading means.

Independent Testing

Testing conducted by an external or third-party organization to ensure objectivity and impartiality, usually for quality control or compliance purposes.

Credit Contract

A legally binding agreement between a borrower and a lender where the borrower is extended a line of credit and agrees to repay the money, subject to agreed terms and conditions.

Garnish Wages

A legal process in which a creditor obtains a court order requiring an employer to withhold a portion of an employee's earnings for the repayment of debt.