For a Particular Diamond Mine, 81% of the Diamonds Fail

question 8

Multiple Choice

For a particular diamond mine, 81% of the diamonds fail to qualify as "gemstone grade". A random sample of 92 diamonds is analyzed. Find the probability that more than 79% of the sample Diamonds fail to qualify as gemstone grade.

• A) 0.6879
• B) 0.3121
• C) 0.3594
• D) 0.6406

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Industry Figures

Statistical data or benchmarks representing the performance, trends, and norms within a specific industry.

Vertical Analysis

Vertical analysis is a financial statement analysis technique where each entry in the main financial statements is represented as a proportion of a selected item, providing insights into the structure of the statements.

Net Income

The residual income of a company after all operational costs and taxes have been taken out of its revenue.