A Hazard Rate Is 1% Per Annum

question 2

Multiple Choice

A hazard rate is 1% per annum.What is the probability of a default during the first two years?

• A) 2.00%
• B) 2.02%
• C) 1.98%
• D) 1.96%

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Definitions:

Percent

A unit of measure that represents one hundredth of a whole, frequently used to describe proportions or comparisons.

Women

Adult human females, often focused on in studies for their unique health, social, and cultural experiences compared to men.

Twelfth Graders

Students in the final year of secondary education, typically aged 17-18 years.

Cocaine

A powerful and addictive stimulant drug derived from the leaves of the coca plant, primarily used recreationally for its euphoric effects.