Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 96

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-Two percent of hair dryers produced in a certain plant are defective. Estimate the probability that of 10,000 randomly selected hair dryers, at least 219 are defective.

• A) 0.0869
• B) 0.0934
• C) 0.0823
• D) 0.9066

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Definitions:

Depreciation Tax Shield

A reduction in taxable income that results from the allowance for depreciation expenses, providing a beneficial impact on cash flow.

Lease-Purchase Analysis

The process of assessing the financial and operational aspects of deciding whether to lease or purchase equipment or property.

Capital Lease

A long-term lease agreement that allows the lessee to effectively own an asset without having it on their balance sheet.

Lease Transfers Ownership

A lease agreement that includes a provision allowing the lessee to acquire ownership of the asset at the end of the lease term.