Find the Indicated Probability

question 118

Multiple Choice

Find the indicated probability.
-A sample of 100 wood and 100 graphite tennis rackets are taken from the warehouse. If 9 wood and 19 graphite are defective and one racket is randomly selected from the sample, find the probability that the racket is wood or defective.

• A) 0.545
• B) 0.14
• C) 0.595
• D) There is insufficient information to answer the question.

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Definitions:

Goodwill

A non-tangible asset formed during the acquisition of a company for a sum greater than the fair value of its net assets that can be identified.

Equity Method

An accounting technique used to record investments in other companies, where the investment is shown as an asset and changes in the investment's value are reflected in profits or losses.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of acquired net assets during a business acquisition.

Initial Value Method

An accounting approach where investments are recorded at their purchase cost without adjustment for changes in market value.