What would be the payout in year 7 under plan A?
2 answers:
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Answer:
C. 0.1
Step-by-step explanation:
The sum of the probabilities of all possible events must equal 1.
Since there is no probability of purchasing two vehicles ore more, the events are:
- Purchase a new vehicle (0.5)
- Purchase a used vehicle (0.4)
- Purchase no vehicle at all (x)
The probability of not purchasing a vehicle is:
The probability that you purchase no vehicle at all is: C. 0.1