Find the Indicated Probability by Using the Special Addition Rule

question 125

Multiple Choice

Find the indicated probability by using the special addition rule.
-A relative frequency distribution is given below for the size of families in one U.S. city.
$\begin{array} { l c } \text { Size } & \text { Relative frequency } \\\hline 2 & 0.416 \\3 & 0.217 \\4 & 0.210 \\5 & 0.102 \\6 & 0.040 \\7 + & 0.015\end{array}$
A family is selected at random. Find the probability that the size of the family is between 2 and 5 inclusive. Round approximations to three decimal places.

• A)0.843
• B)0.945
• C)0.518
• D)0.427

Understand the relationship between inflation rates and P/E ratios.

Calculate and interpret book value per share, its significance and compare it to market and liquidation values.

Identify the roles of different types of analysts and their methodologies in assessing firm value.

Understand and apply the concept of the market capitalization rate and its implications on stock evaluation.

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