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Basic Question 0 of 4
In a certain electric motor factory, production lines 1, 2, and 3 produce 10%, 40%, and 50%, respectively, of the total output. Of their respective outputs, 5%, 3%, and 1% are defective. An electric motor is selected at random. What is the probability that the motor is defective?
B. 0.090
C. 0.978
A. 0.022
B. 0.090
C. 0.978
User Contributed Comments 3
| User | Comment |
|---|---|
| Amrokken | Straighforward 1 |
| ANBobby | Does that add up correctly? |
| ANBobby | oops nevermind |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
formulate an investment problem as a probability tree and explain the use of conditional expectations in investment application
CFA® 2025 Level I Curriculum, Volume 1, Module 4.