The Number of Defects in a Random Sample of 200

question 59

True/False

The number of defects in a random sample of 200 parts produced by a machine is binomially distributed with p = .03. Based on this information, the standard deviation of the number of defects in the sample is 5.82.

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Definitions:

Insured Drivers

Individuals who have obtained an insurance policy that covers them against financial loss or liability resulting from car accidents or theft.

Allocative Efficiency

The state of resource allocation where goods and services are distributed according to consumer preferences and utility maximization.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Consumer Surplus

The gap between the amount consumers are prepared to spend on a product or service and the actual price they pay for it.