In the Textile Industry, a Manufacturer Is Interested in the Number

question 30

Multiple Choice

In the textile industry, a manufacturer is interested in the number of blemishes or flaws occurring in each 100 feet of material. The probability distribution that has the greatest chance of applying to this situation is the

• A)normal distribution
• B)binomial distribution
• C)Poisson distribution
• D)uniform distribution

---

Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on its current income.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss in value as it ages, used for accounting and tax purposes.

Cash Coverage Ratio

A financial metric that measures a company's ability to pay off its debt obligations with its operating cash flow. It is an important indicator of financial health.

Debt-Equity Ratio

A marker indicating the relative financing tactics of using debt and equity in company assets.