Richard Has Been Given a 10-Question Multiple-Choice Quiz in His

question 5

Multiple Choice

Richard has been given a 10-question multiple-choice quiz in his history class. Each question has three answers, of which only one is correct. Since Richard has not attended the class recently, he doesn't know any of the answers. The success occurs if Richard answers a question correctly and the failure occurs if Richard is unable to answer a question correctly. Assuming that Richard guesses on all 10 questions, find the probability that he will answer at least 6 questions correctly. Round your answer to the nearest thousandth.

• A)0.057
• B)0.500
• C)0.600
• D)0.200
• E)0.077

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Definitions:

Option Positions

Refers to the holdings an investor has in options contracts, which could be either calls (betting the stock will rise) or puts (betting the stock will fall).

In The Money

A term used in options trading to describe an option that would generate profit if exercised immediately, because the underlying asset's price is favorable to the option's strike price.

Margin Call

A call from a broker to an investor to add more money or securities in order to safeguard against potential losses.

Option Clearing Corporation

An organization that acts as both the issuer and guarantor for option and futures contracts, ensuring the fulfillment of contract obligations.