A Sales Representative Makes a Sale at Approximately One-Third of the Businesses

question 2

Multiple Choice

A sales representative makes a sale at approximately one-third of the businesses he calls on. On a given day, he goes to four businesses. What is the probability that he will make a sale at all four businesses?

• A) \(\frac { 8 } { 27 }\)
• B) \(\frac { 2 } { 3 }\)
• C) \(\frac { 1 } { 12 }\)
• D) \(\frac { 1 } { 81 }\)
• E) \(\frac { 16 } { 81 }\)

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Definitions:

Production Possibilities Frontier

A graph that shows the highest production potential for two products, based on available resources and various factors.

Means of Production

The resources—including land, labor, capital, and technology—used to produce goods and services in an economy.

Capital

Wealth in the form of money or assets, used in the production of more wealth.

Depression

An extended period of significant decline in economic activity across an economy, characterized by high unemployment, low consumer spending, and reduced industrial output.