The Probabilities That a Batch of 4 Computers Will Contain

question 36

Multiple Choice

The probabilities that a batch of 4 computers will contain 0,1,2,3,and 4 defective computers are 0.4096,0.4096,0.1536,0.0256,and 0.0016,respectively.Find the expected number of defective computers in a batch of 4.

• A)0.80
• B)0.89
• C)1.21
• D)0.70
• E)2.00

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Definitions:

Return on Equity

A metric indicating financial success determined by dividing a company's net income by its shareholders' equity, demonstrating the efficacy of using investments to create increased profits.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends are deducted.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Debt-to-equity Ratio

A financial ratio highlighting the use of debt versus equity in the capital structure supporting a company's assets.