Find the Indicated Probability

question 36

Multiple Choice

Find the indicated probability. Round to four decimal places.
-A car insurance company has determined that 9% of all drivers were involved in a car accident last year. Among the 10 drivers living on one particular street, 3 were involved in a car accident last
Year. If 10 drivers are randomly selected, what is the probability of getting 3 or more who were
Involved in a car accident last year?

• A)0.9548
• B)0.0452
• C)0.4435
• D)0.0541

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Definitions:

Equivalent Unit

In cost accounting, it represents a measure that converts the work done on partial units of output into the amount of completed units that could have been produced with that amount of work.

Weighted Average Method

An inventory costing method that averages out all costs of inventory available for sale during the period and assigns an average cost to each unit sold.

Applied Overhead

An accounting method that allocates estimated overhead costs to specific jobs or production units based on a predetermined rate or formula.

Direct Labor

Wages or costs directly associated with workers who are involved in the production of goods or services.