Pleаse nоte thаt this questiоn cоnsists of three pаrts. You may use MINITAB to find a final answer. However you MUST show all the mathematical work to get to the final answer. Just giving the answer without adequate work/explanation may result in zero for the question. A local manufacturing company produces light bulbs. The lifespan of their light bulbs is normally distributed with mean 1160 hours and standard deviation 105 hours. What is the probability that the lifespan of a randomly selected light bulb manufactured by the company will be over 1200 hours? What value divides the longest 1% lifespans from the rest 99% of lifespans? A quality control team randomly selects a sample of 40 light bulbs and measures their lifespans. What is the probability that the average lifespan of 40 light bulbs will be over 1200 hours?
NоvаChip, Inc. (“Nоvа”) is а Delaware cоrporation that designs AI chips for large data centers. Its stock is listed on the NYSE. Sam Reed (“Sam”) is Nova’s co-founder, CEO, and board chair. He owns 52% of Nova’s outstanding shares. Nova has a five-member board of directors: Sam; Taylor, Nova’s Chief Financial Officer; and three outside directors, Blake, Ellis, and Fran. All three outside directors are “independent” under NYSE listing standards. Nova’s charter contains a DGCL § 102(b)(7) exculpation provision that, to the fullest extent permitted by Delaware law, exculpates directors from monetary damages for duty-of-care breaches. Nova’s main product is “NovaX,” a powerful computer chip card that large data centers use in their servers. Nova’s public filings state that making sure NovaX is safe and compliant with all relevant regulations is absolutely essential (“mission critical”) to the company’s business. The board creates a “Risk Subgroup” consisting of Blake, Ellis, and Fran to “review quarterly risk dashboards.” The Risk Subgroup meets with management by phone once a quarter for about an hour. It receives one-page, color-coded “heat map” dashboards on various risks (including product safety), along with a short written summary from management. The dashboards are prepared by managers who report to Taylor. During mid-to-late 2023, internal engineers repeatedly warned Taylor that NovaX overheats under certain loads and can cause server failures and data loss. Several large customers sent written complaints to Taylor and threatened to cancel contracts. One engineer wrote an email to Taylor marked “URGENT – SAFETY ISSUE,” attaching test data and recommending an immediate recall of a particular batch of NovaX units. Taylor was worried that fully addressing these issues would require Nova to reduce its near-term revenue forecasts and disclose material product problems. She told her finance team to “handle this quietly” and instructed them not to “spook the board” with detailed technical or customer-complaint information. She forwarded a short summary to the Risk Subgroup that mentioned “elevated reliability incidents with certain customers” but stated that “engineering has the issue under control” and “no regulatory reporting is currently required.” Taylor did not forward the “URGENT – SAFETY ISSUE” email or the raw test data to the board or the Risk Subgroup. The Risk Subgroup briefly discussed the reliability item at its next quarterly call with Taylor. Blake asked whether the issue was “systemic.” Taylor responded that “we’ve isolated the affected units and have an action plan in place; we believe the issue is not material.” The Risk Subgroup did not request additional documents or invite the engineers to present. A short note in the board minutes recorded that “management reported on product reliability; no significant issues requiring board action were identified.”In January 2025, a major cloud-computing customer publicly announced that it was suspending use of NovaX due to overheating concerns. The announcement generated negative press and regulatory inquiries. Nova’s stock price dropped by 30%. Following the announcement, internal emails from 2023 and 2024 regarding the overheating issue, including the “URGENT – SAFETY ISSUE” email, were leaked and became public.________________________________________ Question 1 Pat Morgan (“Pat”) bought Nova stock in 2022 and has continuously held shares since then. Pat files suit in the Delaware Court of Chancery against Taylor and Nova’s board for failure of oversight. As Pat’s counsel, explain whether this oversight claim should be characterized as a direct or derivative claim under Delaware law. Describe the procedural steps a stockholder in Pat’s position ordinarily must take to bring such a lawsuit, and analyze whether Pat may bypass the board and file suit without first asking the board to act. (You may assume that when Pat files suit, Nova’s board still consists of the same five directors described above. Your answer should fully analyze this question and, among other things, should address whether Taylor is likely to be held liable for breach of fiduciary duties in connection with the NovaX safety issues and whether the board is likely to be held liable in connection with the NovaX safety issues.)________________________________________