A Ferry Will Safely Accommodate 91 Tons of Passenger Cars

question 19

Multiple Choice

A ferry will safely accommodate 91 tons of passenger cars. Assume that the mean weight of a passenger car is 2.1 tons with standard deviation 0.7 tons. If a random sample of 40
Cars are loaded onto the ferry, what is the probability that the maximum safe weight will
Be exceeded?

• A) 0.0655
• B) 0.0485
• C) 0.0571
• D) 0.9429

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Definitions:

Market Value

The current price at which an asset or company can be bought or sold in the market.

Expected Earnings

The forecasted income that a company anticipates earning over a specific period, often used by investors to gauge potential investment returns.

Unlevered Cost

Unlevered cost refers to the cost of an investment or project that does not include the effects of debt financing, illustrating the cost based solely on equity financing.

Unlevered Cost

The cost of capital for a company that has no debt in its capital structure, reflecting the cost of equity alone.