A Lab Orders a Shipment of 100 Frogs Each Week $$\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.25 & 0.45 & 0.3\end{array}$$

question 118

Multiple Choice

A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.25 & 0.45 & 0.3\end{array}$$ Suppose the mean cost of the frogs is $12.63 per week. Interpret this value.

• A) The average cost for all weekly frog purchases is $12.63.
• B) Most of the weeks resulted in frog costs of $12.63.
• C) The median cost for the distribution of frog costs is $12.63.
• D) The frog cost that occurs more often than any other is $12.63.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual increments.

Annual After-Tax Lease Payment

The yearly lease payment amount after accounting for tax deductions.

Straight-Line Depreciation

A method of depreciation that allocates an equal amount of the asset's cost to each year of its useful life.