TABLE 5-2 a Certain Type of New Business Succeeds 60% of the of the Time

question 102

Short Answer

TABLE 5-2
A certain type of new business succeeds 60% of the time. Suppose that three such businesses open (where they do not compete with each other, so it is reasonable to believe that their relative successes would be independent).
-Referring to Table 5-2, the probability that at least one business succeeds is ________.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowing funds, typically reflected in the profit and loss statement.

Cash Coverage

A ratio that measures a company's ability to meet its interest obligations with its operating cash flow, providing insight into financial stability.

Price/Earnings Ratio

A metric that measures the relationship between a company's stock price and its per-share earnings, providing insight into the market's valuation of the company.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability on a per-share basis.