The Probability of a Randomly Selected Car Crashing During a Year

question 22

Essay

The probability of a randomly selected car crashing during a year is 0.0423 (based on data from the Statistical Abstract of the United States). If a family has three cars, find the
probability that at least one of them has a crash during the year. Is there any reason why
this probability might be wrong?

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Definitions:

Indirect Approach

A method of communication or problem-solving that is not straightforward, often involving suggestion or implication rather than direct statements.

Investing Activities

Financial operations that involve the purchase and sale of long-term assets and other investments not considered cash equivalents.

Financing Activities

Refers to the transactions and events that affect long-term liabilities and equity of a company, including issuing debt, selling shares, and paying dividends.

Direct Approach

A method of income statement preparation where expenses are listed directly against revenue items to show the net income.