The Rate of Defects Among CD Players of a Certain

question 211

Multiple Choice

The rate of defects among CD players of a certain brand is 1.1%.Use the Poisson approximation to the binomial distribution to find the probability that among 270 such CD players received by a store,there is at most one defective.

• A)0.1524
• B)0.8476
• C)0.2037
• D)0.9487
• E)0.7963

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Definitions:

Total Cost Approach

The total cost approach considers all possible costs associated with a decision or project, from production to shipping, to evaluate profitability thoroughly.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Overhaul Costs

The expenses associated with a comprehensive inspection, maintenance, and repair of equipment, machinery, or systems to ensure their operational efficiency.