Final answer:
Winning the grand prize at the carnival game with a probability of 0.005 is considered a rare event.
Step-by-step explanation:
When the probability of winning an event is very low, we consider it to be a rare event. In this case, the probability of winning the grand prize at the carnival game is 0.005, which means there is a 0.5% chance of winning. Since the probability is very small, winning the grand prize is considered a rare event.