Find the Indicated Probability

question 4

Multiple Choice

Find the indicated probability.
-In a homicide case 4 different witnesses picked the same man from a line up. The line up contained 5 men. If the identifications were made by random guesses, find the probability that all 4 witnesses would pick the same
Person.

• A) 0.0009766
• B) 0.8
• C) 0.0016
• D) 0.008

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Definitions:

Annual Net Cash Flows

The total amount of cash generated or spent by a business in a given year after all expenses and revenues.

Internal Rate of Return

A method used in capital budgeting to estimate the profitability of potential investments, calculated as the rate of return where the net present value of all cash flows is zero.

Present Value of Annuity

The current worth of a series of future cash flows, adjusted for interest, often used in calculating loans and investments.

Rate of Return on Investment

A measure of the profitability of an investment, calculated as a percentage of the original investment.