The Probability That a Given Computer Chip Will Fail Is

question 34

Multiple Choice

The probability that a given computer chip will fail is 0.02.Find the probability that of 5 delivered chips,exactly 2 will fail.

• A) .9039
• B) .0922
• C) .0038
• D) .0000

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Definitions:

Semiannual Payments

Payments made twice a year, often in the context of loan repayments or interest payments.

Compounded Semiannually

A method of calculating interest where the interest earned over half a year is added to the principal, and the new total becomes the basis for the next round of interest calculation.

Cost

The monetary value spent by a company to produce or acquire goods or services, including manufacturing and operating expenses.

Compounded Annually

The process of adding interest to the principal sum of a deposit or loan, with the interest that has been added also earning interest from that point on.