Twenty Percent of the Students in a Class of 100

question 11

Multiple Choice

Twenty percent of the students in a class of 100 are planning to go to graduate school. The standard deviation of this binomial distribution is

• A)20
• B)16
• C)4
• D)2

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Definitions:

Average Collection Period

The typical time frame for a company to receive dues from its clients for goods or services offered on credit.

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it, and convert the sale into cash.

Cash Disbursements

Money paid out by a company for expenses, operations, or investments.

Accounts Receivable Period

The accounts receivable period is the average number of days it takes for a company to collect payments owed by its customers after a sale has been made.