At a manufacturing plant, it is known that 8% of the computer chips produced are defective. A random sample of 20 chips is taken. What is the probability that 3 of those chips are defective?

Use the binomial probability formula for exactly 3 defects: C(20,3)(0.08)^3(0.92)^17. The combination term counts the ways to choose which 3 chips are defective, while the powers represent 3 defective and 17 nondefective chips. This gives a probability of about 0.14, so the correct choice is 0.14.

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