Solve the Problem $3 / n$ If a Manufacturer Randomly Selects 25 Computers for Quality

question 12

Multiple Choice

Solve the problem.
-Suppose that n trials of a binomial experiment result in no successes. According to the "Rule of Three", we have 95% confidence that the true population proportion has an upper bound of 3/n $3 / n$ . If a manufacturer randomly Selects 25 computers for quality control and finds no defective computers, what statement can you make by Using the rule of three, about the proportion p, of all its computers which are defective?

• A) We are \(95 \%\) confident that \(p\) is greater than \(\frac { 3 } { 25 }\).
• B) We are \(95 \%\) confident that \(p\) lies between \(\frac { 1 } { 25 }\) and \(\frac { 3 } { 25 }\).
• C) We are \(95 \%\) confident that p does not exceed \(\frac { 3 } { 25 }\).
• D) The value of p cannot be greater than \(\frac { 3 } { 25 }\).

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Definitions:

Internal Rate

Also known as the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.