If Records Indicate That 8 Houses Out of 1000 Are

question 44

Multiple Choice

If records indicate that 8 houses out of 1000 are expected to be damaged by fire in any year, what is the probability that a woman who owns 16 houses will have fire damage in 2 of them in a year? Round your answers to six decimal places. ​

• A)Pr(2 Fires) = 0.003432
• B)Pr(2 Fires) = 0.006863
• C)Pr(2 Fires) = 0.034316
• D)Pr(2 Fires) = 0.005719
• E)Pr(2 Fires) = 0.013726

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Definitions:

Cash Disbursement

The payment of money from a fund or account, typically involving the transfer of cash to individuals or companies for services rendered or goods purchased.

Operating Cycle

The period from purchasing inventory to collecting cash from the sale of that inventory.

Accounts Receivable Financing

A type of financing arrangement in which a company uses its receivables as collateral for a loan, effectively selling its right to future payments in exchange for immediate cash.

Factored Receivables Financing

A financial transaction in which a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.