Underweight, Satisfactory, and Overweight Probability Calculation - CFA® Level 1 Exam Prep

Probability of All Three Packages Being Overweight

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Question

An automatic machine inserts mixed vegetables into a plastic bag. Past experience revealed that some packages were underweight and some were overweight, but most of them had satisfactory weight.

Weight % of Total -

Underweight 2.5 -

Satisfactory 90.0 -

Overweight 7.5 -

What is the probability of selecting and finding that all three of them are overweight?

Answers

Explanations

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A. B. C. D. E.

A

P(all three overweight)=0.075*0.075*0.075 = 0.0004218.

To calculate the probability of selecting and finding that all three packages are overweight, we need to multiply the probabilities of selecting an overweight package for each individual package.

Given the weight percentages, the probability of selecting an overweight package is 7.5%.

Since we are selecting three packages, we multiply the probabilities together:

0.075 * 0.075 * 0.075 = 0.000421875

Rounding to the appropriate number of decimal places, we get 0.0004218.

Therefore, the correct answer is option A. 0.0004218.