We often use sampling in conjunction with deciding the quality of entire shipments. Suppose a shipment of 400 components contains 68 defective and 332 non-defective computer components. From the shipment you take a random sample of 25. When sampling with replacement (so that the p = probability of success does not change), note that a success in this case is selecting a defective part. The P(X≤4)=?

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

The role of the credit department includes: a. evaluating customers' credit applications to determine whether they meet the company's approval standards. b. approving all credit applications in order to avoid losing sales. c. collecting cash from customers. d. following unwritten approval standards for processing customers' credit applications.