The Information in the Table Below Describes Choices for a New

question 53

Multiple Choice

The information in the table below describes choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.Table 5.3

-Refer to Table 5.3. In order to weigh which of the job choices is riskiest, an individual should look at:

• A) the deviation, which is the difference between the probabilities of the two outcomes.
• B) the deviation, which is the difference between the dollar amounts of the two outcomes.
• C) the average deviation, which is found by averaging the dollar amounts of the two outcomes.
• D) the standard deviation, which is the square root of the average squared deviation.
• E) the standard deviation, which is the squared average square root of the deviation.

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Definitions:

Purchases Returns

Goods returned by a buyer to the seller, often due to defects or dissatisfaction, resulting in a refund or credit.

Purchase Discounts

Discounts a buyer receives for paying suppliers early, which are used to reduce the cost of purchased goods.

Net Purchases

Net purchases are the total amount of purchases minus returns, allowances, and discounts over a specified period, often used in analyzing inventory costs.

Sales Discounts

Reductions in the price of goods or services offered as an incentive to customers to encourage prompt payment.