Find the Indicated Probability

question 66

Multiple Choice

Find the indicated probability. Round to three decimal places.
-A company purchases shipments of machine components and uses this acceptance sampling plan: Randomly select and test 30 components and accept the whole batch if there are fewer than 3 defectives. If a particular
Shipment of thousands of components actually has a 7% rate of defects, what is the probability that this whole
Shipment will be accepted?

• A) 0.649
• B) 0.535
• C) 0.196
• D) 0.279

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Definitions:

Price Level

The broad-based average price across the spectrum of goods and services in the economy.

Real Income

Income of individuals or nations adjusted for inflation, reflecting the actual purchasing power.

Velocity of Money

The rate at which money is exchanged from one transaction to another and used to purchase goods and services, reflecting the economy's activity level.

Nominal GDP

A measure of a country's economic output based on current prices, without adjusting for inflation.