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

question 38

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 all three businesses fail is ________.

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Definitions:

Payback Analysis

A calculation used to determine how long it will take to recover the cost of an investment, focusing on the payback period.

Crossover Point

A point in finance where two or more rates or options meet and either the advantages or disadvantages of one equals the other.

Mutually Exclusive

Refers to a situation where the occurrence of one event precludes the occurrence of another event in a scenario.

Independent Project

In project management, a project that does not depend on the acceptance or completion of other projects.