Historical Data for a Local Steel Manufacturing Company Shows That

question 51

Multiple Choice

Historical data for a local steel manufacturing company shows that the average number of defects per standard sheet of steel is 2.In addition,the number of defects per unit is distributed according to Poisson distribution. A batch has just been completed.What is the probability that the first three units manufactured in this batch will contain at least a total of 4 defects?

• A).8488
• B).7149
• C).1512
• D).2851

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Definitions:

Transactions

The economic events of a business that are recorded by accountants.

Revenues and Expenses

Financial metrics reflecting the income earned from normal business operations and the costs incurred to generate that income, respectively.

Operating Activities

Business actions directly related to the production and delivery of goods and services, generating the company’s primary revenue.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.