You Have Been Asked to Simulate the Process of "Flipping

question 71

Multiple Choice

You have been asked to simulate the process of "flipping" two identical, unbiased coins. How many possible outcomes exist for this process? (Hint: Once the coins are flipped it is impossible to tell which is which.)

• A) 1
• B) 2
• C) 3
• D) 4
• E) 5

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Definitions:

Preferred Stockholders

Investors who own preferred shares in a company, with rights to dividends before common stockholders and priority in asset distribution.

Dividends in Arrears

Dividends on preferred stock that have been declared but not paid to shareholders.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.