You Have Been Asked to Sample a Lot of 500

question 49

Multiple Choice

You have been asked to sample a lot of 500 units from vendor whose past quality has been about 2% defective. A sample of 40 pieces is drawn from the lot and you have been told to reject the lot if you find two or more parts defective. What is the probability of finding two or more parts defective?

• A) 0.953
• B) 0.809
• C) 0.191
• D) 0.047

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Definitions:

Chrysler 300

A full-size luxury sedan manufactured by Chrysler, known for its powerful engines and elegant design.

Rescission

A remedy in contract law that annuls the agreement, returning both parties to their respective positions prior to the contract being made.

Liquidated Damages

A contractual provision that specifies a predetermined amount of money that must be paid as damages for failure to perform certain aspects of a contract.

Mitigate

To lessen a loss, for example, by victims of a breach, who have a duty to take all reasonable steps to minimize losses suffered.