The Following Table Describes the Results of Roadworthiness Tests of Ford

question 74

Multiple Choice

The following table describes the results of roadworthiness tests of Ford Focus cars that are three years old (based on data from the Department of Transportation) . The random variable x represents the number of cars
That failed among six that were tested for roadworthiness: $$\begin{array} { | c | c | } \hline x & P ( x ) \\\hline 0 & 0.377 \\\hline 1 & 0.399 \\\hline 2 & 0.176 \\\hline 3 & 0.041 \\\hline 4 & 0.005 \\\hline 5 & 0 + \\\hline 6 & 0 + \\\hline\end{array}$$ Is the probability of getting three or more cars that fail among six cars tested significant, determined by a cutoff value of
0) 05?

• A) Yes
• B) No

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Definitions:

Price Floors

Legally established minimum prices for goods or services, intended to ensure they cannot be sold below a certain price.

Inefficiently Low Quality

A situation where a product or service is produced with a quality level that is not optimal for consumer satisfaction or cost efficiency.

Wasted Resources

Resources that are not utilized in an efficient manner, often leading to economic inefficiency or loss.

Price Floor

A government-imposed minimum price that can be charged for a good or service, designed to protect producers by ensuring that market prices do not fall below a certain level.