It Is Known That 10% of the Calculators Shipped from a Particular

question 136

Multiple Choice

It is known that 10% of the calculators shipped from a particular factory are defective. What is the probability that at least one in a random sample of four calculators is defective?

• A) 0.0010
• B) 0.2916
• C) 0.3439
• D) 0.6561

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Depreciation Tax Shield

The reduction in taxable income for businesses that results from claiming depreciation expenses, thereby lowering tax liabilities.

Break-Even Lease Payment

The lease payment amount at which the cost of leasing equals the cost of owning, resulting in no net profit or loss.

Straight-Line Method

A technique in accounting for evenly spreading the cost of an asset over its useful life.