With an 80 percent chance of continuing a lost-for-good relationship each year,the probability of holding the account through the sixth year is:
A) 0.001
B) 0.2621
C) 0.0209
D) 0.1333
E) 0.80

Question

Quizplus · Accepted Answer

To calculate the probability of holding the account through the sixth year, we need to multiply the chances of continuing the relationship for each of the six years. This can be calculated as follows:

0.8 x 0.8 x 0.8 x 0.8 x 0.8 x 0.8 = 0.262144

Rounding to four decimal places, the answer is 0.2621, which corresponds to choice B.

With an 80 Percent Chance of Continuing a Lost-For-Good Relationship