Which of the Following Cannot Be Described by a Discrete

question 23

Multiple Choice

Which of the following cannot be described by a discrete probability distribution?

• A)Sales of two medical devices in which Device A generates $35 per unit sold and will likely constitute 30% of the sales and Device B generates $50 per unit sold and will likely constitute 70% of the sales.
• B)The labor cost for manufacturing goods, where one-third of the units cost $10 in labor, one-third cost $15 in labor, and one-third cost $50 in labor.
• C)The cost of parts for manufacturing an item, where the parts can take on any value between $80 and $100.
• D)The number of units produced in a given day, where 20% of the time 99 units are produced and 80% of the time 100 units are produced.

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Definitions:

Terminal Value

An estimate of a business's value beyond the explicit forecast period and into perpetuity, often used in financial modeling to estimate the company's long-term sustainability.

Non-Normal Cash Flows

Cash inflows and outflows that do not follow a regular, predictable pattern over time.

MIRR

Modified Internal Rate of Return; a financial measure used to evaluate the attractiveness of investments, adjusting for the costs of investment and for different rates of reinvestment of cash flows.

Required Rate of Return

The minimum return an investor expects to receive from an investment, considering the risk associated with it.