The quality control director at Ace Industries has determined that, currently far too many of the Aces they produce are defective. His target is to reduce the defective rate by 5% of the previous month's rate for each of the next six months. If he is successful what proportion of the current rate of defective Aces will he have eliminated?
A) 26.5%
B) 30.0%
C) 34.0%
D) 48.6%
E) 16.5%

Question

Quizplus · Accepted Answer

The reduction is compounded monthly. After six months, the reduction is calculated as: 1 - (0.95)^6 = 0.265, which is 26.5%.

The Quality Control Director at Ace Industries Has Determined That