If a Penny Is Tossed Three Times and Comes Up

question 32

Multiple Choice

If a penny is tossed three times and comes up heads all three times, the probability of heads on the fourth trial is

• A) 0.
• B) 1/16.
• C) 1/2.
• D) larger than the probability of tails.

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies, recording these investments at cost and subsequently adjusting them to reflect the investee's changes in net assets.

Investment Account

An account held at a financial institution that contains securities, cash, and other assets managed for investment purposes.

Affiliate's Reported

The financial outcomes or other significant reports presented by an entity in which another company holds an interest but does not have full control or ownership.