Refer to the Following Probability Distribution for Profit $$\begin{array} { c c } \text { Prafit } & \text { Prabability } \\\hline \$ 30 & 0.05 \\40 & 0.25 \\50 & 0.60 \\60 & 0.10\end{array}$$

question 59

Multiple Choice

Refer to the following probability distribution for profit
$$\begin{array} { c c } \text { Prafit } & \text { Prabability } \\\hline \$ 30 & 0.05 \\40 & 0.25 \\50 & 0.60 \\60 & 0.10\end{array}$$
-What is the variance of this distribution?

• A) 48.75
• B) 2,376
• C) 525
• D) 70
• E) 11.875

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Definitions:

Total Capitalization

The total value of a company’s outstanding equity and debt.

Note Payable

A liability in a formal written promise to pay a specific amount of money at a future date or dates.

Common Stock

Represents an equity ownership in a corporation, giving holders voting rights and a share of the company's profits via dividends.

Cash Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.