Exhibit 5-8 The Student Body of a Large University Consists of 60

question 76

Multiple Choice

Exhibit 5-8
The student body of a large university consists of 60% female students. A random sample of 8 students is selected.
-Refer to Exhibit 5-8. What is the probability that among the students in the sample at least 6 are male?

• A)0.0413
• B)0.0079
• C)0.0007
• D)0.0499

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Definitions:

"Bird in the Hand" Theory

The investment theory suggesting that investors prefer the certainty of dividend payments over potential capital gains because of the perceived lower risk.

Clientele Effect

The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.

Dividends

Payments made to shareholders out of a company's profits.

Steady Source

A consistent and reliable means of obtaining something, such as income or information.