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:

Share Capital

The money that a company raises through the issue of shares, representing the capital invested by shareholders.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Balance Date

The specific date at which the financial position of a company is measured and reported, often the end of the fiscal year.

AASB 137

A standard issued by the Australian Accounting Standards Board that deals with the accounting for provisions, contingent liabilities, and contingent assets.