Bob, the Proprietor of Midland Lumber, Feels That the Odds

question 210

Multiple Choice

Bob, the proprietor of Midland Lumber, feels that the odds in favor of a business deal going through are 7 to 6. What is the (subjective) probability that this deal will not materialize?

• A) 0.4647
• B) 0.4622
• C) 0.4615
• D) 0.4460

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Definitions:

Effective

Producing the intended or desired result.

Dishonors

Refers to the failure to fulfill an obligation, especially the failure of a bank to pay a check or note when presented.

Sufficient Funds

The necessary amount of money available to complete a transaction or meet financial obligations.

Liable

Being legally responsible or obligated to make amends for harm caused to another person or property.