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:

Purchasing Department

A division within a company that is responsible for procuring goods and services necessary for the company’s operations.

Material Price Variances

Material price variances represent the difference between the actual cost of raw materials used in production and the expected or standard cost.

Sales Department

The division within a company responsible for the sale of products and services, including marketing and customer relations.

Operating Income

The difference between gross profit and operating expenses.