Acompany manufacturers video games with a current defect rate of 0.95%. to make sure as few defective video games are delivered as possible, they are tested before delivery. the test is 98% accurate at determining if a video game is defective. if 100,000 products are manufactured and delivered in a month, approximately how many defective products are expected to be delivered.

Using the binomial distribution, it is found that 190 defective products are expected to be delivered.

For each piece delivered, there are only two possible outcomes. Either it is defective, or it is not. The probability of a piece delivered being defective is independent of any other piece, which means that the binomial distribution is used to solve this question.

Binomial probability distribution

Probability of exactly x successes on n trials, with p probability.  

The expected value of the binomial distribution is:

In this problem:

Then:

190 defective products are expected to be delivered.

A similar problem is given at link

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%