In a Recent Year, 304 of the Approximately 300,000,000 People

question 8

Multiple Choice

In a recent year, 304 of the approximately 300,000,000 people in the United States were struck by lightning. Estimate the probability that a randomly selected person in the United States will be struck by lightning this year.

• A) 0.0000101
• B) 0.00000101
• C) 0.000000101
• D) 0.000101

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Definitions:

Compounding

The process of generating earnings on an asset's reinvested earnings, leading to exponential growth over time.

Present Value

The modern-day valuation of upcoming money amounts or cash flow sequences, adjusted according to a given rate of return.

Bank Account

A financial account maintained by a bank for a customer, allowing the customer to deposit and withdraw money and possibly earn interest.

Equal Payments

Installments of the same amount paid or received over a specified period for loans, mortgages, or annuities.