THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 60

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The probability that a person catches a cold during the cold and flu season is 0.4.Assume that 10 people are chosen at random.
-What is the probability that four or more of them will catch a cold?

• A)0.715
• B)0.618
• C)0.546
• D)0.312

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Definitions:

Cost Of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract investors.

Average Rate

Usually refers to the mean value of a set of rates or percentages over a specified period or set of conditions.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.