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In a Certain Geographic Area, 40% of the Inhabitants Are

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Short Answer

In a certain geographic area, 40% of the inhabitants are pet owners. If four inhabitants are selected
at random, what is the probability that all will be pet owners?


Definitions:

Initial Cost

The original expenditure for purchasing an asset or starting a project, excluding maintenance or operating costs.

Project Analysis

The examination of the various aspects of a project, including costs, revenue, risks, and benefits, to assess its viability and potential for success.

Net Present Value

A financial metric that calculates the value of a project or investment in today's dollars by discounting future cash flows to the present.

Security Market Line

A graphical representation in the Capital Asset Pricing Model (CAPM) that displays the expected return of an investment as a function of its beta, or systematic risk.

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