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:

Net Capital Outflow

The difference between the domestic country's sale of assets to foreigners and its purchase of assets from foreigners during a specific period.

Loanable Funds

The market model representing the supply and demand for loans, where the interest rate is determined.

Demand

The desire of purchasers to buy a certain good or service, backed by the ability and willingness to pay a specific price.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to savers.