Solve the Problem. -A Firm Uses Trend Projection and Seasonal Factors to Simulate

question 116

Multiple Choice

Solve the problem.
-A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot. The simulator generates the following output. 0 1 0 2 0 0 0 1 0 3 2 0 0 0 0 2 1 2 3 1 2 0 2 0 3 0 0 2 1 0 1 Estimate the probability that sales will rise at least moderately.

• A)0.258
• B)0.512
• C)0.419
• D)0.323

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Definitions:

Commission

A fee or percentage of a transaction paid to an agent or employee for facilitating or completing a sale.

Accrued Interest

Interest that has accumulated but remains unpaid.

360-Day Year

A financial convention that simplifies interest calculation by assuming a year has 360 days.

Commission

A fee paid for services, usually a percentage of the total cost.