The Following Table Describes the Results of Roadworthiness Tests of Ford

question 173

Multiple Choice

The following table describes the results of roadworthiness tests of Ford Focus cars that are three years old (based on data from the Department of Transportation) . The random variable x represents the number of cars
That failed among six that were tested for roadworthiness: $$\begin{array} { | c | c | } \hline x & P ( x ) \\\hline 0 & 0.377 \\\hline 1 & 0.399 \\\hline 2 & 0.176 \\\hline 3 & 0.041 \\\hline 4 & 0.005 \\\hline 5 & 0 + \\\hline 6 & 0 + \\\hline \hline\end{array}$$ Find the probability of getting three or more cars that fail among six cars tested.

• A) 0.222
• B) 0.048
• C) 0.005
• D) 0.046

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Definitions:

Operating Lease

A lease agreement allowing the use of an asset but does not convey rights similar to ownership of the asset.

Direct Financing Capital Lease

A lease agreement where the lessor purchases an asset and leases it out to the lessee, earning interest revenue over the lease term.

Implicit Rate

The interest rate implied in the terms of a lease, representing the lessor's yield if not explicitly stated.

Financing Income-Leases

Income generated from leasing out assets, under which the lessor retains ownership of the asset and provides the lessee the right to use it for a specific period.