Dorothy Little Purchased a Mailing List of 2,000 Names and Addresses

question 4

Multiple Choice

Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list.She randomly selects five names from the list for validation.If 40% of the names on the list are non-authentic, and x is the number of non-authentic names in her sample, P(x=0) is ______________.

• A)0.8154
• B)0.0467
• C)0.0778
• D)0.4000
• E)0.5000

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is exactly equal to the quantity demanded at the market's equilibrium price.

Social Insurance

Programs designed to provide protection against economic risks (such as unemployment, disability, or old age) largely based on contributions that reflect a person's earnings.

Loanable Funds

The pool of money available for borrowing in the financial markets, governed by interest rates, which balance the supply of savers and the demand by borrowers.

Interest Rate

The percentage of a loan subject to interest fees for the borrower, often shown as an annual portion of the outstanding loan balance.