Find the Indicated Probability

question 58

Multiple Choice

Find the indicated probability. Round to three decimal places.
-An airline estimates that 91% of people booked on their flights actually show up. If the airline books 76 people on a flight for which the maximum number is 74, what is the probability that the Number of people who show up will exceed the capacity of the plane?

• A) 0.028
• B) 0.006
• C) 0.007
• D) 0.001

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Definitions:

Rent Revenue

Income earned by a company from renting out properties or equipment to others.

Deferred Tax Liabilities

The amount of income tax payable in future reporting periods in respect of taxable temporary differences.

Depreciation Adjustment

Accounting action that alters the depreciation expense recognized for an asset, potentially due to changes in estimate, salvage value, or useful life.

Tax Effect

The impact of tax laws on the financial statements of a company, particularly concerning deferred tax assets and liabilities.