The JO Supplies Company Buys Calculators from a Non-U

question 19

Multiple Choice

The J.O. Supplies Company buys calculators from a non-U.S. supplier. The probability of a defective calculator is 10 percent. If 100 calculators are selected at random, what is the expected number of defectives?

• A) 9
• B) 90
• C) 10
• D) 95

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Definitions:

Investment Carrying Amount

The value at which an investment is recognized in the balance sheet after deducting any impairment or amortization.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Management Fee

A charge levied by an investment manager for managing an investment fund.

Fair Value Gain

Positive changes in the fair market value of investments or assets, reflecting increased worth.