Use the Following Information to Answer the Question

question 2

Multiple Choice

Use the following information to answer the question. Suppose that the probability that a person books an airline ticket using an online travel website is 0.72. For the questions that follow, consider a sample of ten randomly selected people who recently booked an airline ticket.
-What is the probability that exactly seven out of ten people used an online travel website when they booked their airline ticket? Round to the nearest thousandth.

• A)0.480
• B)0.998
• C)0.035
• D)0.264

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Definitions:

Treasury Bond

A long-term, fixed-interest government security with a maturity of more than ten years, considered a safe investment.

Bid

The price a buyer is willing to pay for a security or asset.

Ask

The lowest price a seller is willing to accept for an asset being sold on the market, opposite of the bid price.

AAA Corporate Bonds

The highest quality bonds issued by corporations with a strong ability to repay the debt, making them low-risk investments.