If the Number of Defective Items Selected at Random from a Parts

question 36

Multiple Choice

If the number of defective items selected at random from a parts inventory is considered to follow a binomial distribution with n = 50 and p = 0.10, the standard deviation of the number of defective parts is:

• A) 5
• B) 4.5
• C) 45
• D) about 2.12

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Definitions:

Qualitative Characteristic

A feature that defines or characterizes the quality of information in accounting and financial reporting, such as relevance or reliability.

Expected Value Analysis

A form of analysis that assigns likelihoods (probabilities) to various inputs, thus incorporating uncertainty directly into the output (answer).

Probabilities

A measure representing the likelihood or chance of certain events occurring, expressed as a number between 0 and 1.

Uncertainty

A lack of definite knowledge or predictability about outcomes, often factored into decision-making and risk assessments.