The Probability That a Given Computer Chip Will Fail Is

question 34

Multiple Choice

The probability that a given computer chip will fail is 0.02.Find the probability that of 5 delivered chips,exactly 2 will fail.

• A) .9039
• B) .0922
• C) .0038
• D) .0000

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Definitions:

Interest Allowance Method

A method used in accounting to allocate interest expense over the life of a debt at a constant rate.

Original Investment

The initial amount of money spent to acquire an asset or start a business venture, not including subsequent expenses.

Retail Selling Price

The price at which goods are sold to the public, typically higher than the wholesale price to include profit margin.

Salary Allowances

Amounts allocated in addition to base salary, often to cover expenses such as housing, transportation, or for specific purposes set by the employer.