A Perfectly Balanced Coin Is Tossed 6 Times, and Tails

question 43

Multiple Choice

A perfectly balanced coin is tossed 6 times, and tails appears on all six tosses. Then, on the seventh trial

• A) tail can not appear.
• B) head has a larger chance of appearing than tail.
• C) tail has a better chance of appearing than head.
• D) tail has same chance of appearing as the head.

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Definitions:

Profitability Index

A financial tool used to assess the desirability of an investment by dividing the present value of future cash flows by the initial investment cost.

Economic Lives

The duration over which an asset is expected to be useful in generating revenue or other economic benefits.

Equivalent Annual Cost

The cost per year of owning and operating an asset over its entire lifespan, taking into account both the initial purchase price and the ongoing operating costs.

NPV

A calculation technique used to estimate the value of an investment by assessing the present value of all cash flows associated with it, both incoming and outgoing.