The Management of a Parcel Delivery Firm in Accra, Ghana

question 4

Multiple Choice

The management of a parcel delivery firm in Accra, Ghana know that the chances of a parcel being delivered on time are 0.6, 0.85 or 0.7 depending on whether it goes on van A, B or C respectively. The chance of being on van A is 0.4 and the chance of being on van B is 0.35. What is the overall probability that a parcel will be delivered on time (3 decimal places) ?

• A) 0.634
• B) 0.659
• C) 0.683
• D) 0.713

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Definitions:

Stock's Beta

An indicator of how volatile a stock is compared to the general market, where a beta value above 1 signifies that the stock experiences more fluctuation than the market overall.

Standard Deviation

In finance, standard deviation measures the amount of variance or dispersion of a set of financial returns, indicating the investment's volatility.

Expansionary Fiscal Policy

An increase in government purchases, decrease in net taxes, or some combination of the two aimed at increasing aggregate demand enough to reduce unemployment and return the economy to its potential output; fiscal policy used to close a recessionary gap

Contractionary Fiscal Policy

A decrease in government purchases, increase in net taxes, or some combination of the two aimed at reducing aggregate demand enough to return the economy to potential output without worsening inflation; fiscal policy used to close an expansionary gap.