On a Particular Production Line, the Likelihood That a Light

question 117

Multiple Choice

On a particular production line, the likelihood that a light bulb is defective is 5%. Ten light bulbs are randomly selected. What is the probability that none of the light bulbs will be defective?

• A) 0.0105
• B) 0.0746
• C) 0.3151
• D) 0.5987

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Definitions:

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose, affecting its depreciation or amortization schedules.

Discount Rate

In discounted cash flow analysis, this is the interest rate utilized to calculate the present value of cash flows expected in the future.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and operational efficiency of the business.