Table 14-1 A New Young Mother Has Opened a Cloth Diaper Service

question 53

Multiple Choice

Table 14-1
A new young mother has opened a cloth diaper service. She is interested in simulating the number of diapers required for a one-year- old. She hopes to use this data to show the cost effectiveness of cloth diapers. The table below shows the number of diapers demanded daily and the probabilities associated with each level of demand.
-According to Table 14-1, if the random number 40 were generated for a particular day, what would the simulated demand be for that day?

• A) 5
• B) 6
• C) 7
• D) 20
• E) None of the above

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Definitions:

Lending Money

The act of giving money to another party with the expectation that the money will be paid back, typically with interest.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Investing Activities

Part of a company's cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Gain

Gain refers to an increase in economic benefits or inflow of assets that result in an increase in equity, not related to contributions from equity participants.