Circuit Boards for Wireless Telephones Are Etched, in an Acid

question 13

Multiple Choice

Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards.A sample of seven boards is randomly selected from each lot for inspection.A particular batch contains two defective boards; and x is the number of defective boards in the sample.P(x=2) is _______.

• A)0.1315
• B)0.8642
• C)0.0042
• D)0.6134
• E)0.0034

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to each unit of production, based on estimated or budgeted overhead costs and activity.

Machine-Hours

A measure of production output or activity level based on the total hours machines are operating.

Total Manufacturing Cost

The cumulative expense of producing goods, including labor, materials, and overhead costs.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.