In a Certain City, 5 Percent of All Drivers Have

question 116

Multiple Choice

In a certain city, 5 percent of all drivers have expired licenses and 10 percent have an unpaid parking ticket. If these events are independent, what is the probability that a driver has both an expired license and an unpaid parking ticket?

• A).010
• B).005
• C).001
• D)Cannot be determined

---

Definitions:

Cost Method

An accounting practice of recording an investment at its original purchase cost, without reflecting changes in market value, unless a permanent decline in value is acknowledged.

Dividend Income

Income received from owning shares in a company, typically paid out of the company's profits.

Financial Statements

Documents that provide an overview of a business's financial condition, including balance sheet, income statement, and cash flow statement, among others.

Joint Ventures

A commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities.