Consider the Following to Answer the Question(s) Below

question 27

Multiple Choice

Consider the following to answer the question(s) below:
A courier service claims that only 5 % of all of its deliveries arrive late. Assuming deliveries are independent, a sample of 10 deliveries is randomly selected.
-What is the probability that more than 2 of the sample deliveries arrive late?

• A) 0.0115
• B) 0.0105
• C) 0.0862
• D) 0.0746
• E) 0.0439

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Definitions:

Easy Entry

A characteristic of market structures where new competitors can easily enter the market without significant barriers or cost.

Constant-Cost Industry

An industry in which the costs of production, including input prices, do not change as the industry's output changes.

Economic Profits

Profits calculated after subtracting both the explicit and implicit costs from total revenues; also known as supernormal profits.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing additional earnings beyond the normal profit level.