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To find the probability that a dime is picked exactly twice, we can use the formula for the probability of independent events occurring in a sequence:
P(A and B) = P(A) * P(B)
where P(A) is the probability of the first dime being picked and P(B) is the probability of the second dime being picked.
Since there is only one dime in the bag, the probability of picking a dime on the first draw is 1/3. Since the coin is replaced after each draw, the probability of picking a dime on the second draw is also 1/3.
Therefore, the probability of picking a dime exactly twice is:
P(dime, dime) = P(dime) * P(dime) = (1/3) * (1/3) = 1/9
So, the probability that a dime is picked exactly twice is 1/9 or approximately 0.1111.