Solve the Problem. -The Average Life (In Months) of an Automobile Battery Is

question 66

Multiple Choice

Solve the problem.
-The average life (in months) of an automobile battery is 3 months. If the battery life is exponentially distributed, find the probability that the life of a randomly selected battery is greater than 5 years.

• A) 0.8111
• B) 0.2704
• C) 0.0630
• D) 0.1889

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Definitions:

Pro Forma

A method of calculating financial results to emphasize either current or projected figures.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.

Statement of Financial Position

Another term for a balance sheet, it provides a snapshot of a company's assets, liabilities, and shareholder equity at a specific point in time.

Net Working Capital

The difference between a company's current assets and its current liabilities, measuring its short-term financial health and its ability to cover short-term obligations.