A Production Process Produces 2% Defective Parts

question 44

Multiple Choice

A production process produces 2% defective parts. A sample of five parts from the production process is selected. What is the probability that the sample contains exactly two defective parts?

• A)0.0004
• B)0.0038
• C)0.10
• D)0.02

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Definitions:

Laffer Curve

A representation of the relationship between tax rates and the amount of tax revenue collected by governments, suggesting an optimal tax rate that maximizes revenue without deterring economic activity.

Tax Rates

The percentage at which an individual or corporation is taxed by the government on their income or profits.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Buyers of Coffee

Individuals or entities that purchase coffee for consumption, resale, or further processing.