A Company Has Two Machines That Produce Widgets

question 144

Multiple Choice

A company has two machines that produce widgets.An older machine produces 23% defective widgets,while the new machine produces only 8% defective widgets.In addition,the new machine produces three times as many widgets as the older machine does.Given a randomly chosen widget was tested and found to be defective,what is the probability it was produced by the new machine?

• A) 0.511
• B) 0.08
• C) 0.15
• D) 0.489

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Definitions:

Payables Period

The average amount of time it takes for a business to pay its invoices and bills to suppliers.

Payables Period

The average period of time it takes for a business to pay off its debts to suppliers.

Credit Sales

Sales transactions where the payment is deferred, allowing the buyer to pay at a later date.

COGS

The Cost of Goods Sold represents the direct expenses related to the production of goods that a company sells.