At a Carnival Game, You'll Win a Prize If You

question 2

Short Answer

At a carnival game, you'll win a prize if you pick a rubber duck out of a pool that has a red dot on the bottom.If only 3 ducks out of 95 present have such a dot, what is your probability of winning a prize?

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Definitions:

Du Pont Identity

A framework that breaks down the return on equity (ROE) into three parts: profit margin, asset turnover, and financial leverage, to diagnose financial performance.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.

Total Asset Turnover

An analysis ratio that evaluates the effectiveness of a corporation's assets in producing sales turnover.

Liquidity Ratio

Financial metrics used to assess a company's ability to meet its short-term obligations using its most liquid assets.