If a New Machine of a Production Plant Is Functioning

question 120

Short Answer

If a new machine of a production plant is functioning properly,only 1% of the items produced will be defective.Out of the 1,000 items the plant produces on a single day,the approximate probability that no more than 0.2% of the items will be defective if the new machine is indeed functioning properly is .

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Definitions:

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Contra-revenue Account

is an account that is deducted from gross revenues to arrive at net revenue, examples include sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a debit to the sales returns account and a credit to accounts receivable or cash.

Gross Sales

The gross sales income of a business before subtracting any returns, allowances, or discounts.