Interpret the Mean of a Discrete Random Variable as an Expected

question 23

Short Answer

Interpret the Mean of a Discrete Random Variable as an Expected Value
-A legendary football coach was known for his winning seasons. He consistently won nine or more games per season. Suppose $x$ equals the number of games won up to the halfway mark (six games) in a 12-game season. If this coach and his team had a probability $p = 0.8$ of winning any one game (and the winning or losing of one game was independent of another), then the probability distribution of the number $x$ of winning games in a series of six games is:
$\begin{array}{l|l}x & P(x) \\\hline 0 & 0.000064 \\1 & 0.001536 \\2 & 0.015360 \\3 & 0.081920 \\4 & 0.245760 \\5 & 0.393216 \\6 & 0.262144\end{array}$

Find the expected number of winning games in the first half of the season for this coach's football teams.

Describe the process and calculations involved in the preparation of consolidation worksheets following an acquisition.

Identify and calculate goodwill and its impairment, including the recognition and measurement principles under US GAAP.

Understand the equity method of accounting for investments and its impact on consolidated financial statements.

Calculate and account for purchase price allocation, including adjustments to fair values of assets and liabilities.

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Definitions:

Net Present Value

A financial metric that calculates the present value of future cash flows minus the initial investment, used in capital budgeting to assess the profitability of investments.

Investment Project

A project involving the allocation of funds to assets or activities with the expectation of generating income or profit in the future.

Incremental Annual Net Cash Inflows

The additional cash flow a business expects to receive over a year as a result of a specific decision or investment, net of expenses.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.