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:

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of a business, indicating the point at which profit starts to be generated.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before losses begin.

Percentage Of Sales

A financial ratio that compares a particular figure or total, such as profit or expense, to the total sales revenue.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the risk level of not covering fixed costs.