Compute At-Least Probabilities
-Investment in New Issues (The Stock of Newly

question 202

Multiple Choice

Compute At-least Probabilities
-Investment in new issues (the stock of newly formed companies) can be both suicidal and rewarding. Suppose that of 300 newly formed companies in 1990 , only 16 appeared to have outstanding prospects. Suppose that you had selected two of these 300 companies back in 1990 . Find the probability that at least one of your companies had outstanding prospects.

• A) \(0.1039911\)
• B) \(0.3153623\)
• C) \(0.8960089\)
• D) \(0.0506577\)

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Definitions:

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals to determine the level of inventory and cost of goods sold.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Statement Of Financial Position

A balance sheet is a financial statement that outlines a company's equity, liabilities, and assets at a certain date.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.