The Following Represents the Probability Distribution for the Daily Demand $$\begin{array} { c c } \text { Demand } & \text { Probability } \\0 & 0.1 \\1 & 0.2 \\2 & 0.3 \\3 & 0.2 \\4 & 0.2\end{array}$$

question 71

Multiple Choice

The following represents the probability distribution for the daily demand of computers at a local store. $$\begin{array} { c c } \text { Demand } & \text { Probability } \\0 & 0.1 \\1 & 0.2 \\2 & 0.3 \\3 & 0.2 \\4 & 0.2\end{array}$$ The expected daily demand is

• A) 1.0
• B) 2.2
• C) 2.0
• D) 4.0

---

Definitions:

Mutually Exclusive

Situations or options that cannot occur or be chosen at the same time; selecting one excludes the possibility of selecting the other.

Investment Decisions

The process of deciding where to allocate and commit financial and capital resources to optimize returns.

Cash Flow

The overall quantity of cash exchange happening in and out of a business, profoundly impacting its liquidity ratio.

Payback Rule

A capital budgeting principle that evaluates an investment based on the time needed to recoup the invested capital.