At a manufacturing plant where switches are made, it is a known fact that 2% of all switches are defective. If two switches are used in a device, what is the probability that both switches are good?

If 2% of switches are defective, then 98% are good, or 0.98. Assuming the two switches are independent, the probability that both are good is 0.98 × 0.98 = 0.9604. The correct choice is 0.9604.

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