The Random Variable X Represents the Number of Boys in a Family

question 46

Multiple Choice

The random variable x represents the number of boys in a family with three children. Assuming that births of boys and girls are equally likely, find the mean and standard deviation for the random variable x.

• A) mean: 1.50; standard deviation: .87
• B) mean: 2.25; standard deviation: .87
• C) mean: 1.50; standard deviation: .76
• D) mean: 2.25; standard deviation: .76

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Definitions:

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of credit sales that are not expected to be collected due to customer default.

Uncollectible Receivables

Refers to money owed to a company that it is unable to collect from its debtors, often considered as a bad debt expense.

Allowance Method

An accounting technique used to estimate and account for bad debts, where companies anticipate some accounts receivable will be uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to recover, often treated as a bad debt expense.