Dell Computers Receives Large Shipments of Microprocessors from Intel Corp

question 113

Multiple Choice

Dell Computers receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of microprocessors that are defective is small. Suppose Dell decides to test five microprocessors out of a shipment of thousands of these microprocessors. Suppose that if at least one of the microprocessors is defective, the shipment is returned. If Intel Corp.'s shipment contains 10% defective microprocessors, calculate the probability the entire shipment will be returned.

• A) 0.4980
• B) 0.4209
• C) 0.4095
• D) 0.4550

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Definitions:

Excise Tax

A tax levied on the sale of particular goods or services, such as alcohol and tobacco, usually with the intent of reducing their consumption through higher prices.

Excise Tax

A specific tax levied on the sale of a particular good or service, often included in the price of items such as tobacco or alcohol.

Tax Rate

The percentage at which income or property is taxed by a government.

Pretax Equilibrium

The market equilibrium that occurs before any taxes are applied to goods or services, reflecting the balance between supply and demand without tax-induced price distortions.