Consider the Following to Answer the Question(s) Below

question 14

Multiple Choice

Consider the following to answer the question(s) below:
A courier service claims that no more than 5 % of all of its deliveries arrive late. Assuming deliveries are independent, a sample of 10 deliveries is randomly selected.
-What is the probability that more than 2 of the sample deliveries arrive late?

• A) 0.0116
• B) 0.0105
• C) 0.0862
• D) 0.0746
• E) 0.0439

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Definitions:

Useful Life

The estimated lifespan of a depreciable asset during which it can be expected to contribute to company operations.

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Residual Value

The estimated value that an asset will realize upon its disposal at the end of its useful life.

Useful Life

The estimated period over which a fixed asset is expected to be usable by a company, beyond which it is considered to depreciate.