THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 336

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A supplier is evaluating a firm to manufacture a subassembly.Quality data from past inspections reveal the following probabilities for number of defective parts in a shipment:

-What is the probability that the shipment will have at least two defective parts?

• A)0.20
• B)0.90
• C)0.86
• D)0.10

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Definitions:

Target Payout Ratio

The percentage of net income that a firm aims to pay out to its shareholders as dividends.

Earnings

The amount of profit that a company produces during a specific period, indicative of its financial health and performance.

Dividend Payments

Cash or stock distributed by a company to its shareholders out of its profits or reserves.

Signaling

The act of using information to convey a message about the quality or desirability of a product, service, or investment, often in situations where there is asymmetric information.