Thirty Percent of the CFA Candidates Have a Degree in Economics

question 140

Multiple Choice

Thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that none of them has a degree in economics?

• A) 0.027
• B) 0.300
• C) 0.343
• D) 0.900

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Definitions:

Economic Models

Simplified frameworks used to describe the workings of the economy and to analyze economic variables and their relationships.

Trickle-up Theory

A theory suggesting that trends and innovations are initiated from the lower social classes and then adopted by the upper classes.

Trickle-down Theories

Theories suggesting that trends, behaviors, or innovations initiated by higher socioeconomic groups gradually spread to lower socioeconomic groups.

Trickle-down Theory

An economic hypothesis that argues benefits for the wealthy will "trickle down" to everyone else, improving the economy as a whole.