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

question 11

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, what is the cumulative probability that demand is less than or equal to 7?

• A) 0.85
• B) 0.95
• C) 0.80
• D) 0.15
• E) None of the above

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Definitions:

Single

A filing status on tax returns used by individuals who are unmarried or legally separated from their spouse as of the decedent of the tax year.

Foreign Tax Credit

A tax credit that cannot be refunded, allocated for income taxes paid to an overseas government due to withholdings from foreign income tax.

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