Solve the Problem. -If It Has Been Determined That the Probability of an Probability

question 256

Multiple Choice

Solve the problem.
-If it has been determined that the probability of an earthquake occurring on a certain day in a certain area is 0.05, what are the odds against an earthquake?

• A)1 to 20
• B)19 to 1
• C)18 to 1
• D)20 to 1

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Definitions:

Equity Capital

Funds raised by a company in exchange for a share of ownership in the company, often through the sale of stock.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value over time.

Economic Profit

Economic profit is the surplus that remains when total revenue exceeds the total costs, including both explicit and implicit costs.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.