A Surprise Quiz Was Given Yesterday in Your Biology Class

question 5

Multiple Choice

A surprise quiz was given yesterday in your biology class with 8 multiple choice questions.A classmate who took it claimed to have guessed on every question,but got them all correct.Each question had 5 possible answers.Should you believe him? Explain,basing your argument on a simulation involving at least 10 runs.

• A)No,the possibility of that happening is very small,about 1.51571657.
• B)Yes,it is likely.
• C)It is hard to tell.The simulation would need to have more than 10 runs.
• D)No,the possibility of that happening is very small,about 0.00000256.
• E)Yes,it is possible.

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Definitions:

Direct-Financing Lease

A lease agreement where the lessor effectively finances the asset for the lessee, recognizing interest revenue over the lease term.

Credit-Approved Customers

Individuals or entities that have been evaluated and deemed creditworthy by a lender, allowing them to receive goods or services in advance of payment.

Present Value Interest Factors

Present value interest factors are used to calculate the present value of a future amount of money or stream of cash flows given a specific interest rate.

Lease Liability

A financial obligation representing the present value of future lease payments owed by a lessee under a lease agreement.