A Company Realizes That 5% of Its Pens Are Defective

question 28

Multiple Choice

A company realizes that 5% of its pens are defective.In a package of 30 pens,is it likely that more than 6 are defective? Assume that pens in a package are independent of each other.

• A)Yes.
• B)No.6 is more than 10% of 30.
• C)No.The pens in a package are dependent on each other.
• D)No.The chance of getting a defective pen changes depending on the pens that have already been selected.
• E)No.There are more than two possible outcomes.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can dictate the market price.

Government Regulation

Laws and rules established by governments to control the behavior of businesses and individuals to achieve policy objectives.

Binding

A term used to describe an agreement, rule, or law that is legally or contractually enforceable, requiring adherence by the parties involved.

Equilibrium Price

The cost at which the amount of a product available matches the amount of the product desired.