A Major Textbook Publisher Has a Contract with a Printing

question 19

Multiple Choice

A major textbook publisher has a contract with a printing company. Part of the contract stipulates that no more than 5 percent of the pages should have any type of printing error. Suppose that the company selects a random sample of 400 pages and finds 33 that have an error. If the printer is meeting the standard, what is the probability that a sample this size would have 33 or more errors?

• A) 0.0014
• B) 0.4986
• C) 0.9986
• D) 0.1245
• E) 0.3755

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Definitions:

MUa/Pa

A ratio used in economics to represent the marginal utility of a good (MUa) divided by its price (Pa), indicating the additional satisfaction gained per unit of spending.

MUb/Pb

A concept from economics that compares the additional utility gained from consuming one more unit of a good (MUb) to its price (Pb), often used in optimal consumption analysis.

Maximizing Utility

The economic principle that individuals seek to achieve the highest level of satisfaction possible from their consumption of goods and services, given their income and the prices of those goods and services.

Marginal Rate

The rate at which one variable changes with respect to a minute increase in another variable, often used in the context of marginal tax rates or marginal rates of substitution in economics.