A New Car Was Put into Production

question 56

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 cars 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:

Appreciate the Dollar

A term referring to the increase in value of the U.S. dollar relative to other currencies.

Flexible Exchange Market

A type of foreign exchange market where exchange rates can fluctuate in response to market forces without direct government intervention.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Appreciate the Euro

An increase in the value of the Euro relative to other currencies.