A Lab Orders a Shipment of 100 Frogs Each Week $$\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.3 & 0.4 & 0.3\end{array}$$

question 202

Multiple Choice

A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.3 & 0.4 & 0.3\end{array}$$ How much should the lab budget for next year's frog orders assuming this distribution does not change? (Hint: Find the expected price and assume 52 weeks per year.)

• A) $3,380,000.00
• B) $1250.00
• C) $650.00
• D) $12.50

Comprehend the difference between capital stock and capital flow.

Recognize the forms of investments in human capital.

Identify the role of households in providing financial resources for capital investment.

Understand how inventory levels affect a firm's tangible capital.

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Definitions:

Bearer Bond

A bearer bond is a type of fixed-income security that is not registered in the owner's name, allowing the holder of the document to collect the interest and principal payments.

Registered

This can refer to securities, companies, or assets that have been officially recorded and recognized by regulatory authorities.

Premium

The amount by which the price of a financial instrument or commodity exceeds its principal or face value, or the amount paid for an insurance policy.

Coupon Rate

The yearly rate of interest that the entity issuing a bond pays to its investors, typically shown as a portion of the bond's nominal value in percentage terms.