At a Particular Toll Booth,20% of Vehicles Use Transponders While

question 72

Multiple Choice

At a particular toll booth,20% of vehicles use transponders while the rest have their license plates scanned.Usually,150 vehicles pass this toll booth during any one hour time period.During the next hour,what is the probability that exactly 25 vehicles will pass through using a transponder?

• A)20.84%
• B)86.33%
• C)5.11%
• D)4.54%

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in the evaluation of investment opportunities.

Cash Flow Stream

A series of cash inflows and outflows over a period of time, often used in financial models to determine investment viability or project returns.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost, indicating profitability.

Perpetuity

A series of payments of a fixed amount that last indefinitely.