LUMINOUS SHINING Co. recalled a product due to a possible defect caused by malfunctioning factory equipment. The
Fantastic news! We've Found the answer you've been seeking!
Question:
LUMINOUS SHINING Co. recalled a product due to a possible defect caused by malfunctioning factory equipment. The products recalled will be repaired free of charge. LUMINOUS is uncertain whether all products recalled will have a possible defect. However, the following estimate was made by LUMINOUS’s engineers and managerial accountants and approved by the board of directors. Repair cost Probability 80,000,000 5% 60,000,000 20% 40,000,000 35% 20,000,000 40% 100% How much is the provision to be recognized?
a. 38M
b. 48M.
c. 50M
d. 32M
Related Book For
Mathematical Statistics with Applications in R
ISBN: 978-0124171138
2nd edition
Authors: Chris P. Tsokos, K.M. Ramachandran
Posted Date: