A Package Delivery Service Claims That No More Than 5

question 42

Multiple Choice

A package delivery service claims that no more than 5 percent of all packages arrive at the address late.Assuming that the conditions for the binomial hold,if a sample of size 10 packages is randomly selected and the 5 percent rate holds,what is the probability that more than 2 packages will be delivered late?

• A)0.0116
• B)0.0105
• C)0.0862
• D)0.0746

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Definitions:

1933 Securities Act

U.S. legislation that requires the registration of securities and disclosure to protect investors from fraud in the securities market.

Investment Contract

A type of security representing an investment of money with an expectation of profit primarily from the efforts of others.

Supreme Court

The highest judicial court in the United States, often the final arbiter of legal and constitutional issues.

Section 14(e)

A provision under the U.S. Securities Exchange Act of 1934 that prohibits fraudulent, deceptive, and manipulative practices in connection with tender offers.