A machine is used in a production process. From past data, it is known that 97% of the time the machine is set up correctly. Furthermore, it is known that if the machine is set up correctly, it produces 95% acceptable (non-defective) items. However, when it is set up incorrectly, it produces only 40% acceptable items
a. An item from the production line is selected. What is the probability that the selected item is non-defective?
b. Given that the selected item is non-defective, what is the probability that the machine is set up correctly?
a. 0.9335
b. 0.9871
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The Financial Accounting Standards Board is:
A. Responsible for the review and audit of federal income tax returns. B. Primarily concerned with the preparation of the annual federal budget. C. A private group that conducts research and determines generally accepted accounting principles. D. A government agency with legal authority to approve or disapprove the financial statements of corporations that sell their securities to the public.
Under what type of securities offering must the issuer determine if the investor is an accredited, sophisticated, or unaccredited investor?
a. Regulation A offering. b. Regulation D offering. c. Public offering. d. An interstate offering.