On a Particular Production Line, the Likelihood That a Light

question 117

Multiple Choice

On a particular production line, the likelihood that a light bulb is defective is 5%. Ten light bulbs are randomly selected. What is the probability that none of the light bulbs will be defective?

• A) 0.0105
• B) 0.0746
• C) 0.3151
• D) 0.5987

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces total receivables to reflect the estimated uncollectible amounts.

Specific Customer

A particular or individual client to whom products or services are sold or provided.

Allowance Method

An accounting technique that estimates and deducts accounts receivable that may not be collectible, to more accurately represent a company's financial position.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, used in valuing inventory to reflect the net amount that can be realized.