A New Car Was Put into Production

question 90

Multiple Choice

A new car was put into production. It involved many assembly tasks. Each car was inspected at the end of the assembly line and the number of defects per unit was recorded. For the first 100 cars produced, there were 40 defective cars. Some of the cars had no defects; a few had one defect, and so on. The distribution of defects followed a Poisson distribution. Based on the first 100 produced, about how many out of every 1,000 cars assembled should have one or more defects?

• A) About 660
• B) About 165
• C) About 630
• D) About 330

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Definitions:

Opportunity Cost

Opportunity cost is the cost of foregoing the next best alternative when making a decision, representing the benefits that could have been gained by choosing the alternative option.

Opportunity Cost

The expense associated with not choosing the second-best option when deciding.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Point E

typically used in the context of graphs, it can represent a specific equilibrium point or any designated point of interest.