What Do You Conclude About the Claim Below? Do Not

question 75

Essay

What do you conclude about the claim below? Do not use formal procedures or exact calculations. Use only the
rare event rule and make a subjective estimate to determine whether the event is likely.
Claim: A company claims that the proportion of defective units among a particular model of computers is 4%.
In a shipment of 200 such computers, there are 10 defective units.

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Definitions:

Promise

An assurance given by one party to another agreeing to do or not do something in the future.

Agreement in Principle

An initial acceptance indicating a preliminary agreement before the details are finalized.

Binding Contract

An agreement between two or more parties that is legally enforceable in a court of law.

Verbal

Pertaining to words or spoken communication, often used in the context of agreements or contracts.