Since we have that 316 CDs are defective from 1938, then:

A) we have that 1622 good CDs were produced.
B) If A is the probability that all 4 cds are good if you are selecting without replacement is:

C)In this case, we can use the 5% guideline, since the sample size is 4 and it's less than the 5% of 1938 (option C).
D) We can check this by calculating the probability assuming each selection is with replacement:

Then, the probability that all 4 CDs are good assuming this situation is independent is 0.4907
E)We have seen that both probabilities are almost the same, but in most cases, it's best to use the 5% guideline. Therefore, the answer D is the best choise because the 5% guideline is very accurate in this case (otpion B)