Solve the Problem $\frac { 7 } { 24 }$ ; B

question 202

Multiple Choice

Solve the problem.
-A traffic light at an intersection has a 120-sec cycle. The light is green for 80 sec, yellow for 5 sec, and red for 35 sec.
a. When a motorist approaches the intersection, find the probability that the light will be red.
(Assume that the color of the light is defined as the color when the car is 100 ft from the Intersection. This is the approximate distance at which the driver makes a decision to stop or go.)
b. If a motorist approaches the intersection twice during the day, find the probability that the light
Will be red both times.

• A) a. \(\frac { 7 } { 24 }\); b. \(\frac { 7 } { 48 }\)
• B) a. \(\frac { 7 } { 24 } ;\) b. \(\frac { 49 } { 576 }\)
• C) a. \(\frac { 1 } { 3 } ;\) b. \(\frac { 1 } { 9 }\)
• D) a. \(\frac { 1 } { 3 }\); b. \(\frac { 1 } { 6 }\)

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Definitions:

Securities

Financial instruments that represent obligations on the part of the issuers to provide the purchasers with expected stated returns on the funds invested or loaned.

Financial Instruments

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Bondholders

Investors who own bonds issued by corporations or governments, entitled to receive interest payments and the principal amount upon maturity.

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Individuals or institutions that lend money or extend credit to others, expecting repayment in the future with possible interest.