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A Vaccine Is 95 Percent Effective

question 80

Essay

A vaccine is 95 percent effective. What is the probability that it is not effective for:
-One and only one individual out of 20 individuals?


Definitions:

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, recorded at fair value and subject to changes in the income statement upon realization.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, profits, or losses.

Trading Securities

Financial instruments that are purchased primarily for selling in the near term with the intention of generating profit from short-term price fluctuations.

Fair Value

The amount one would get from selling an asset or the cost to transfer a liability during a well-structured deal between participants in the market at the time of evaluation.

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