Which of the Following Statements Is Incorrect

question 18

Multiple Choice

Which of the following statements is incorrect?

• A) The expected value of a discrete probability distribution is the long-run average value assuming the experiment will be repeated many times.
• B) The standard deviation of a discrete probability distribution measures the average deviation of the random variable from the mean.
• C) The distribution is considered uniform if all the probabilities are equal.
• D) The mean of the probability distribution is equal to the square root of the variance.

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Definitions:

Undiscounted Cash Flows

Cash flows that have not been adjusted for the time value of money, representing the gross amount of cash that is expected to be generated over time.

Historical Cost

Historical cost refers to the original monetary value of an asset for accounting purposes, not taking into account inflation adjustments or current market values.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and put into use.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often used in calculating depreciation expense.