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Manufacturing and Product Development A tire manufacturer has started a program to monitor production. In every batch of eight tires, two will be randomly selected and tested for defects electronically. An experiment consists of recording the condition of these two tires: defect-free (G) or reject (B). Suppose two of the eight tires in a batch actually have serious defects.
a. List the outcomes in this experiment.
b. What is the probability that both tires selected will be defect-free?
c. What is the probability that at least one of the tires selected will have a defect?
d. What is the probability that both tires selected will have a defect?
An article in Money compares investment in an income annuity, offered by insurance companies, and a mix of low-cost mutual funds.6 Suppose the following data are annualized returns (in percent) randomly sampled from these two kinds of investments.
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