David's Gasoline Station Offers 4 Cents Off Per Gallon If

question 54

Multiple Choice

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one-hour period,15 customers buy gasoline at this station. What is the probability that all 15 pay in cash?

• A)0.0
• B)0.1
• C)0.9
• D)1.0

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Definitions:

Loss on Disposal

A financial loss that occurs when the selling price of an asset is less than its carrying amount.

Revenue Account

An account that shows the income generated by a business from its normal operational activities.

Fully Depreciated

A status of a fixed asset when its book value is reduced to zero through depreciation over its useful life, assuming it has no salvage value.

Discarded

Refers to items or materials that have been thrown away or disposed of because they are no longer useful or required.