A Jar Contains 10 Red Marbles and 30 Blue Marbles

question 61

Multiple Choice

A jar contains 10 red marbles and 30 blue marbles.A random sample of n = 3 marbles is selected from the jar.If the first two marbles are both blue, what is the probability that the third marble will be red?

• A)10/37
• B)10/38
• C)10/40
• D)8/38

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertook by investing their capital.

WACC

Weighted Average Cost of Capital, a calculation that reflects the cost of a company to finance its assets through a mix of equity and debt.

Level of Risk

The level of risk and possible monetary loss associated with making an investment choice.

Weighted Average Cost

A measure that calculates the average cost of goods available for sale, considering the weight of each unit's cost.