Forty-Four Percent of Consumers with Credit Cards Carry Balances from Month

question 24

Multiple Choice

Forty-four percent of consumers with credit cards carry balances from month to month. Four consumers with credit cards are randomly selected. What is the probability that fewer than two consumers carry a credit card balance?

• A) 0.4074
• B) 0.6734
• C) 0.7717
• D) 0.3643

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Definitions:

European Residents

Individuals living in one of the countries that make up the continent of Europe.

Z-scores

Standardized scores that indicate how many standard deviations an element is from the mean.

P-values

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing results at least as extreme as those measured when the null hypothesis of a study is true.

Home Team Advantage

The phenomenon where the home team in a sporting event has significant advantages over the visiting team, often due to familiarity with the playing field, support from local fans, and not having to travel.