You Are Performing 5 Independent Bernoulli Trials With $p = 0.8$

question 153

Multiple Choice

You are performing 5 independent Bernoulli trials with $p = 0.8$ and $q = 0.2$ . Calculate the probability of at least three successes. Round your answer to four decimal places if necessary.

• A)0.9421
• B) 0.9997
• C) 0.0579
• D) 0.9933
• E) 0.0410

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Definitions:

After-Tax Borrowing Rate

The interest rate on borrowed funds after accounting for the effect of income taxes.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Financial Lease

A lease agreement where the lessee effectively obtains all the risks and rewards of ownership without actually owning the asset.