Suppose That 4 Out of 12 Liver Transplants Done at a Hospital

question 56

Multiple Choice

Suppose that 4 out of 12 liver transplants done at a hospital will fail within a year. Consider a random sample of 3 of these 12 patients. What is the probability that all 3 patients will result in failed transplants?

• A) .018
• B) .037
• C) .296
• D) .333

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Definitions:

Interest Payments

The amount paid by a borrower to a lender as compensation for the use of borrowed funds, usually calculated as a percentage of the principal amount.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been received but were given up.

Explicit Cost

Direct, out-of-pocket payments for resources employed in the production of goods or services.

Marginal Cost

The additional cost incurred by producing and selling one more unit.