According to Police Sources, a Car with a Certain Protection

question 8

Multiple Choice

According to police sources, a car with a certain protection system will be recovered 89% of the time. Find the probability that 3 of 7 stolen cars will be recovered.

• A)0.004
• B)0.429
• C)0.89
• D)0.11

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Definitions:

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Earnings Before Interest and Taxes

A measure of a firm's profit that includes all expenses except interest and income tax expenses.

Cash Coverage Ratio

A liquidity metric that measures a company's ability to pay off its debt with its cash flow, demonstrating financial health.

Days' Sales In Inventory

A measure of how efficiently a company manages its inventory, calculated by dividing the inventory by the daily average cost of goods sold.