Historical Data Indicates That Only 20% of Cable Customers Are

question 154

Multiple Choice

Historical data indicates that only 20% of cable customers are willing to switch companies.If a binomial process is assumed,then in a sample of 20 cable customers,what is the probability that between 2 and 5 (inclusive) customers are willing to switch companies?

• A)0.1369
• B)0.1746
• C)0.0377
• D)0.7350
• E)0.500

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds.

Tax Rate

The percentage at which an individual or corporation is taxed.

Debt-to-Equity Ratio

A measure indicating how a company's assets are financed through a mix of debt and equity from shareholders.

Balance Sheet

A report detailing a company's assets, liabilities, and equity of shareholders at a particular moment.