Which Method for Establishing Probability Would Be Most Appropriate for Determining

question 8

Multiple Choice

Which method for establishing probability would be most appropriate for determining the probability that the next man who walks into a certain restaurant will have a moustache?

• A)method of equal alternatives
• B)method of frequency
• C)intuitive judgment
• D)The methods would all be equally appropriate.
• E)None of the methods could be applied in this situation.

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Definitions:

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life.

Residual Value

The estimated value that an asset will have at the end of its useful life.

Estimated Life

The expected period over which an asset will be utilized or useful, often used for the purpose of depreciation or amortization calculations.

Depreciable Cost

The total cost of a fixed asset that can be depreciated over its useful life, excluding salvage value.