Leland-Morgan Consulting Is Considering a Project and Its Analysts Have $\text { OUTCOME\quad PROBABILITY OF OUTCOMEASSUMPTIONS }$

question 53

Multiple Choice

Leland-Morgan Consulting is considering a project and its analysts have projected the following outcomes and their probabilities.
$\text { OUTCOME\quad PROBABILITY OF OUTCOMEASSUMPTIONS }$
$\begin{array}{llc}\$ 6,000 &\quad\quad\quad\quad 25 \% & \text { pessimistic } \\\$ 8,000 &\quad\quad\quad\quad 40 \% & \text { moderately successful } \\\$ 10,000 &\quad\quad\quad\quad 35 \% & \text { optimistic }\end{array}$
-What is the standard deviation of the outcomes?

• A) $2,850
• B) $4,200
• C) $1,536
• D) cannot be determined with the information given

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically including things like rent, salaries, and utilities.

Prepaid Advertising

Prepaid advertising refers to the costs paid in advance for advertising services or spaces that will be used over time, recognized as an asset until the advertising takes place.

Balance Sheet

This document outlines a business's resources, obligations, and the equity held by shareholders at a specified time.

Contra Asset

An account on a company's balance sheet that reduces the total amount of an associated asset account, often used for accumulated depreciation.