A Car Insurance Company Has Determined That 7% of All

question 156

Multiple Choice

A car insurance company has determined that 7% of all drivers were involved in a car accident last year. Among the 11 drivers living on one particular street, 3 were involved in a car accident last year. If 11 drivers are randomly selected, what is the probability of getting 3 or more who were involved in a car accident last year?

• A)0.4871
• B)0.9683
• C)0.0317
• D)0.0370

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Definitions:

Debt-to-Equity Ratio

This ratio measures the mix of shareholders' equity to debt in financing a company's assets.

Dividend Yield

A fiscal metric indicating the annual dividend payout by a company compared to its share price.

Dividends Per Share

A measure of the dividend payment per share of stock issued, calculated by dividing the total dividends paid by the company by the number of outstanding shares.

Return on Assets

Return on assets (ROA) is a profitability ratio that measures how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.