A Manager Has Just Received the Expense Checks for Six

question 17

Multiple Choice

A manager has just received the expense checks for six of her employees. She randomly distributes the checks to the six employees. What is the probability that exactly five of them will receive the correct checks (checks with the correct names) ?

• A) 1
• B) 1/2
• C) 1/6
• D) 0
• E) 1/3

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Definitions:

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, on a monthly basis.

Compounded Annually

Interest on an investment or loan calculated once a year on both the initial principal and the accumulated interest from previous periods.

RRSP

Registered Retirement Savings Plan, a Canadian retirement savings vehicle that offers tax benefits.

Ordinary Annuity

Definition: An annuity for which the payment or receipt of funds happens at the end of each period.