Use the Normal Distribution to Approximate the Desired Probability

question 66

Multiple Choice

Use the normal distribution to approximate the desired probability.
-A coin is tossed 20 times. A person, who claims to have extrasensory perception, is asked to predict the outcome of each flip in advance. She predicts correctly on 16 tosses. What is the probability of being correct 16 or more
Times by guessing? Does this probability seem to verify her claim?

• A) 0.0069, no
• B) 0.4931, yes
• C) 0.0069, yes
• D) 0.4931, no

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Definitions:

Goodwill Allocation

The process of assigning the value of goodwill, an intangible asset, to different business units within a company.

Fair-Value

Fair-Value is the estimated market value of an asset or liability, based on current market conditions rather than historical cost.

Acquisition Method

A set of procedures used in accounting to consolidate the financial statements of two companies in the event of a merger or acquisition.

Pre-Acquisition Income

The earnings generated by a company before it was acquired by another entity.