What is the probability it was produced by the new machine

Assignment Help Financial Management
Reference no: EM131513707

A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. Given a randomly chosen widget was tested and found to be defective, what is the probability it was produced by the new machine?

   a. 0.08

   b. 0.15

   c. 0.489

   d. 0.511

Reference no: EM131513707

Questions Cloud

What is the price of the treasury bond : What is the price (expressed as a percentage of the face value) of the treasury bond?
Describe the theoretical principles about couple therapy : Describe the theoretical principles about couple therapy that are central to working with couples?
What will be the value in your account at the end of year : You will invest each payment in an account that pays 8 percent. What will be the value in your account at the end of Year 20?
Coupon bonds on the market with eight years left to maturity : The Timberlake-Jackson Wardrobe Co. has 11.3 percent coupon bonds on the market with eight years left to maturity.
What is the probability it was produced by the new machine : what is the probability it was produced by the new machine?
Future value of all of the cash flows at the end of year : Calculate the Future Value of all of the cash flows at the end of year 20. Show a complete timeline of the cash flows.
Explain the value in cultural awareness : Consider development across cultures by describing mainstream and (cross) cultural research and applying content to your own life.
Determine the forces created in the columns : The tall building in Figure is constructed of structural steel. The exterior columns, which are uninsulated, are exposed to the outside ambient temperature.
What is the bonds yield to maturity : What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

Reviews

Write a Review

Financial Management Questions & Answers

  Depositor at melvins bank

Suppose you know that Melvin's other depositors plan to keep their money there. Should you do the same or withdraw your money and deposit it elsewhere?

  Require venture capital financing

Lately, venture capital firms have been investing in companies that are close to going public, and in larger start-up firms such as Google. Venture capital firms prefer to risk their money on proven business models. Discuss what types of companies ty..

  Pretax cost of debt and aftertax cost of debt

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. Wh..

  Net present value for the first twelve years of investment

Gov. Swann wants to expand his cannonball factory with a $6,800 addition. It will increase revenue by $6,000 per year, and only increase costs by $3,000. The $6,800 consists of $4500 for a building and $2,300 for machinery. Strangely, current US depr..

  Sufficient funds to pay cash for entire expansion project

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $169.47 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for..

  Calculate and explain in words all calculations

For the last 10 years you have been depositing a fixed amount into your savings account. You have been doing that once a year at the beginning of each year. You now have $35,000 in your account. What has the dollar amount of each deposit been if you’..

  Enable michele to achieve her investment requirement

what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

  Marketing manager of jewelry cleaning product

You are the new marketing manager of a jewelry cleaning product specially formulated for cleaning precious stones, jewelry, and watches. The product is sold through two large department store chains, which receive a 50% retailer margin. The product’s..

  What was the flotation cost as a percentage of funds raised

The Green Hills Co. has just gone public. What was the flotation cost as a percentage of funds raised?

  Why will total return rise when rates fall

Suppose that you own a callable U. S. agency bond like that in Exhibit 16.9. Explain why your total return will fall when interest rates rise. Identify changes in return associated with each component of total return. Why will total return rise when ..

  What is the percentage price change of these bonds

Bond J has a coupon rate of 4 percent and Bond K has a coupon rate of 10 percent. what is the percentage price change of these bonds?

  Modigliani and miller dividend policy

Some have argued that, if the firm issues an even higher dividend than expected, it must mean they do not have many profitable, new projects to invest in. Thus the stock price should fall. How would you respond and why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd