A Gumball Machine Contains Three Colours of Gumballs

question 50

Multiple Choice

A gumball machine contains three colours of gumballs. There are 10 red gumballs, 10 blue gumballs, and 20 white gumballs. If you take a random sample of four gumballs from the machine and three are white, what is the probability that the fourth will be blue?

• A) .25
• B) .50
• C) .75
• D) none of these

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Definitions:

Fair Value

An estimate of the price at which an asset would be bought or sold in a current transaction between willing parties, not under compulsion.

Market Price

The prevailing market rate at which transactions for assets or services are conducted.

Investment Sold

The act of divesting an asset or security, converting an investment back into cash or its cash equivalent.

Equity Investment Transactions

Financial activities involving the buying and selling of stock or ownership stakes in a company.