If Records Indicate That 8 Houses Out of 1000 Are

question 44

Multiple Choice

If records indicate that 8 houses out of 1000 are expected to be damaged by fire in any year, what is the probability that a woman who owns 16 houses will have fire damage in 2 of them in a year? Round your answers to six decimal places. ​

• A)Pr(2 Fires) = 0.003432
• B)Pr(2 Fires) = 0.006863
• C)Pr(2 Fires) = 0.034316
• D)Pr(2 Fires) = 0.005719
• E)Pr(2 Fires) = 0.013726

---

Definitions:

Corporate Bond

A corporate bond is a debt security issued by a corporation to raise funding, which promises to pay back the principal along with interest at a specified maturity date.

Higher Yield

Refers to investments offering a greater return in terms of interest or dividends, often accompanied by higher risk.

Effective Annual Rate

The interest rate on an investment or loan that reflects the actual annual rate of interest, accounting for compounding over a given period.