Computers Are Often Used to Randomly Generate Digits of Telephone

question 104

Multiple Choice

Computers are often used to randomly generate digits of telephone numbers to be called for telemarketing purposes. Can the methods used with normal probability distributions be used to find the probability that when one digit is randomly generated, it is greater than 5? Why or why not? What is the probability of getting a digit greater than 5?

• A) Yes, because the generated digits have a normal distribution. The probability of a digit greater than 5 is 0.4.
• B) No, because the generated digits do not have a normal distribution. The probability of a digit greater than 5 is 0.6.
• C) Yes, because the generated digits have a normal distribution. The probability of a digit greater than 5 is 0.6.
• D) No, because the generated digits do not have a normal distribution. The probability of a digit greater than 5 is 0.4.

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Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Present Value

The present financial value of a future money amount or stream of cash flows, calculated using a specific rate of return.

Annual Net Cash Flows

The amount of cash a company generates after all its expenditures, both operational and capital in nature, have been paid off within a fiscal year.

Average Rate of Return

A financial metric used to calculate the average annual return on an investment or project over its lifetime.