On Average, a Certain Kind of Kitchen Appliance Requires Repairs

question 49

Multiple Choice

On average, a certain kind of kitchen appliance requires repairs once every four years. Assume that the times between repairs are exponentially distributed. What is the probability that the appliance will work at least six years without requiring repairs?

• A) 0.7769
• B) 0.3456
• C) 0.6544
• D) 0.2231

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests.

Financial Management

The strategic planning, controlling, organizing, and monitoring financial resources to achieve an organization's goals and objectives.

Current Value

The present worth of an asset or company based on market prices, as opposed to historical cost or book value; often used in gauging financial performance.

Existing Stock

The shares that are currently issued and outstanding in the market, referring to the stock previously sold to and held by the shareholders.