Suppose a Computer Chip Manufacturer Rejects 3% of the Chips $10 ^ { - 7 }$

question 25

Multiple Choice

Suppose a computer chip manufacturer rejects 3% of the chips produced because they fail presale testing.If you test 4 chips,what is the probability that all of the chips fail?

• A)0.03
• B)0.08853
• C)0.97
• D)8.1 × \(10 ^ { - 7 }\)
• E)0.12

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Definitions:

Double-Declining Balance

An accelerated method of depreciation that doubles the rate at which an asset's book value is reduced over time, reflecting quicker loss of value.

Straight-Line Depreciation

A technique for apportioning the price of a physical asset over its effective duration in steady annual portions.

Salvage Value

The expected salvage value of an asset after it has served its useful life.

Service Life

The expected period during which an asset remains usable, functional, or productive before it requires replacement or major repair.