In Which Spending Category Would You Enter the Following Transaction

question 124

Multiple Choice

In which spending category would you enter the following transaction? Company A successfully launches a hostile takeover of Company B, in which it purchases all the assets of Company B.

• A)Government purchases
• B)Net exports
• C)Investment
• D)Consumption
• E)None of these

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Definitions:

Probability

A numerical expression of the potential for a given event to take place, with values spanning from 0 to 1.

Binomial Experiment

An experiment with two outcomes (success and failure) for each trial, with a fixed number of trials and constant probability of success.

Successes

The occurrences of a defined outcome of interest in a series of trials or tests.

Hypergeometric Distribution

A discrete probability distribution that describes the probability of k successes in n draws, without replacement, from a finite population of size N that contains exactly K successes.