The Probability That a House in an Urban Area Will

question 13

Multiple Choice

The probability that a house in an urban area will develop a leak is 4%. If 39 houses are randomly selected,what is the probability that none of the houses will develop a leak?

• A) 0.204
• B) 0.040
• C) 0.000
• D) 0.001

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Definitions:

Diminishing

The process of lessening or decreasing in size, importance, or intensity.

Output

The quantity of goods or services produced by a business, individual, machine, or industry over a specified period.

Marginal Costs

Marginal costs refer to the increase or decrease in the total cost of producing one more unit of a good or service.

Marginal Productivity

The additional output that results from employing one more unit of input, such as labor or capital, while keeping other inputs constant.