A Test Consists of 10 True/false Questions

question 21

Multiple Choice

A test consists of 10 true/false questions. To pass the test a student must answer at least 6 questions correctly. If a student guesses on each question, what is the probability that the
Student will pass the test? Round to three decimal places.

• A)0.828
• B)0.172
• C)0.377
• D)0.205

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Definitions:

Merger

The combination of two or more companies into a single entity, typically to achieve synergistic benefits, expand market reach, or gain efficiencies.

Purchase Accounting Method

An accounting method used in mergers and acquisitions to consolidate the financial statements of both companies, where the purchaser's statements incorporate the assets and liabilities of the acquired company at their fair market values.

Goodwill

An intangible asset that arises when a company acquires another company for more than the fair market value of its assets.

Net Working Capital

Net working capital is a measure of a company's short-term financial health, calculated as the difference between its current assets and current liabilities.