A Automobile Marketing Firm Conducts a Study to See What

question 8

Multiple Choice

A automobile marketing firm conducts a study to see what types of cars people owned before buying an American car. The results are shown below. $$\begin{array} { | c | c | } \hline \text { Previous Ownership } & \text { Frequency } \\\hline \text { American } & 760 \\\hline \text { Japanese } & 375 \\\hline \text { Korean } & 72 \\\hline \text { German } & 37 \\\hline \text { Other } & 24 \\\hline \text { Total } & 1268 \\\hline\end{array}$$ The relative frequency of those who owned Japanese cars previously who now bought American cars is

• A) 59.9 %
• B) 29.6%
• C) 5.7%
• D) 14.9%
• E) 2.9%

---

Definitions:

Equity

Equity represents ownership interest in a corporation, measured by the portion of the company's capital that comes from the shareholder's investment.

Risk-Free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government bonds.

Strike Price

The strike price, in options trading, is the price at which the holder of an option contract can buy (call option) or sell (put option) the underlying security or commodity.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a particular time frame.