A Widget Fails 12 Times in 600 Hours of Operation

question 58

Multiple Choice

A widget fails 12 times in 600 hours of operation.The failure rate of the widget is ______.

• A)0.02
• B)0.03
• C)0.01
• D)0.05

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Definitions:

Optimal Choice

The most efficient, advantageous selection or decision based on available information and constraints.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute the consumption of one good for another.

Interest Rate

The remuneration, depicted as a fraction of the principal, that a lender exacts from a borrower for asset utilization.

Income Effect

A change in the consumption patterns of individuals or economies due to a change in real income or purchasing power.