Exhibit 5-10 The Probability Distribution for the Number of Goals the Lions

question 20

Multiple Choice

Exhibit 5-10
The probability distribution for the number of goals the Lions soccer team makes per game is given below.
-Refer to Exhibit 5-10. What is the probability that in a given game the Lions will score less than 3 goals?

• A)0.85
• B)0.55
• C)0.45
• D)0.80

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Cost

Expenses in a business operation that fluctuate with the level of output, such as materials and labor costs.