In a Management Trainee Program, 80% of the Trainees Are

question 59

Multiple Choice

In a management trainee program, 80% of the trainees are female, 20% male. A total of 90% of the females attended college, while 78% of the males attended college. A management trainee is selected at random. What is the probability that the person selected is a female who did attend college?

• A)0.20
• B)0.08
• C)0.25
• D)0.72

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Definitions:

Mutually Exclusive Investments

Mutually exclusive investments are investment options where the choice of one alternative precludes the selection of another, requiring a careful comparison to choose the best option.

Capital Rationing

Occurs when investors or management place a constraint on the size of the firm’s capital budget during a particular period.

Accounting Rate of Return

A financial ratio that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.

Weighted Average Cost of Capital

The average rate of return a company is expected to pay its security holders to finance its assets, weighted by the type of capital.