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Economics and Finance
As Baby Boomers reach retirement age, many are beginning to carefully examine their savings plans and government benefits. This generation is worried about remaining financially independent as many companies cut or even eliminate pension plans. According to a report commissioned by the Canadian bank CIBC, approximately 25% of retiring Baby Boomers expect to carry some debt into their retirement.38 Suppose three Baby Boomers are selected at random.
a. What is the probability that exactly two of the three expect to carry some debt into retirement?
b. What is the probability that all three expect to carry some debt into retirement?
c. Suppose another random sample of five Baby Boomers is obtained. What is the probability that exactly one adult from each sample expects to carry some debt into retirement?
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