A True-False Test of 20 Questions Is Given to 10,000

question 28

Multiple Choice

A true-false test of 20 questions is given to 10,000 students. If all the students guess on each question, how many students would you expect to get 17 or more questions correct?

• A) 0.0013
• B) 11
• C) 13
• D) 0.0011

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Definitions:

Incurred

Refers to costs or expenses that have been recognized or acquired, usually due to a company's operations or activities.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the price paid for the use of borrowed money or for delaying the repayment of a debt.

Operating Expense

Expenses incurred through normal business operations, like rent, utilities, and payroll.

Income Statement

A report detailing a firm's income, expenditures, and net income or loss for a certain time frame.