The Manager of C & R Clothiers, a Major Manufacturer

question 136

Short Answer

The manager of C & R Clothiers, a major manufacturer of men's shirts, has determined that 3% of C & R's shirts do not meet with company standards and are sold as "seconds" to discount and outlet stores. What is the probability that in a day's production of 200 dozen shirts, less than 12 dozen will be classified as "seconds"?
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Round your answer to four decimal places, if necessary.
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Definitions:

Vertical Restraints

Business practices and contractual agreements between companies at different levels of the supply chain that restrict how a product or service can be sold.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is permissible based on its procompetitive versus anticompetitive effects.

Vertical Restraint

Describes any restriction in a supply chain imposed by a company at one level (e.g., manufacturer) on a company at a different level (e.g., distributor), often affecting how the latter can sell or price its products.

Sherman Act

A landmark federal statute in U.S. antitrust law prohibiting monopolistic practices and promoting competition.