Instruction 5-2 a Certain Type of New Business Succeeds 60% of the of the Time.Suppose

question 61

Short Answer

Instruction 5-2
A certain type of new business succeeds 60% of the time.Suppose that 3 such businesses open (where they do not compete with each other,so it is reasonable to believe that their relative successes would be independent).
-Referring to Instruction 5-2,the probability that all 3 businesses fail is ________.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Invested Assets

Assets or capital that have been allocated or deployed with the expectation of earning a return or profit.

Operating Expenses

Expenses incurred in the regular operation of a business, such as rent, salaries, utilities, and office supplies, but excluding cost of goods sold.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, essentially measuring how much out of every dollar of sales a company actually keeps in earnings.