A Manufacturer of Golf Balls Uses a Production Process That

question 14

Multiple Choice

A manufacturer of golf balls uses a production process that produces 10 percent defective balls. A quality inspector takes samples of a week's output with replacement. Using the cumulative binomial probability table available in your text, the inspector can determine which of the following probabilities?

• A) If 5 units are inspected, the probability of at most 3 of these units being defective is .984.
• B) If 10 units are inspected, the probability of 5 or 6 of these units being defective is .002.
• C) If 15 units are inspected, the probability of at least 10 of these units being defective is .547.
• D) If 20 units are inspected, the probability of at least 19 of these units being defective is .0009.

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Definitions:

Security Held

A financial asset, such as stocks or bonds, that is owned and possessed by an investor or institution.

Realized Return

The actual gain or loss achieved on an investment over a specified time period.

Expected Component

A forecasted part or aspect of a financial analysis or investment, often based on trends or historical data.

Discounted Component

A part of a financial transaction that is sold or bought at less than its face value or principal amount.