A Machine Shop Has 100 Drill Presses and Other Machines

question 49

Multiple Choice

A machine shop has 100 drill presses and other machines in constant use. The probability that a machine will become inoperative during a given day is 0.0555. During some days no machines are inoperative, but during some days, one, two, three, or more are broken down. What is the probability that fewer than two machines will be inoperative during a particular day?

• A) 0.0200
• B) 0.1637
• C) 0.8187
• D) 0.9824

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Definitions:

Intra-Entity Transfer

Transactions involving assets, services, or funds between divisions or units within the same company, impacting financial statements when aggregated.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies by recording such profits in proportion to their ownership stake in the invested company.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries to create a single set of financials.

Intra-Entity Transfer

Transactions of goods, services, or funds that occur between departments or divisions within the same company or organization.