A Random Sample of 100 Items Is Selected from a Population

question 4

Multiple Choice

A random sample of 100 items is selected from a population of size 350. What is the probability that the sample mean will exceed 200 if the population mean is 195 and the population standard deviation equals 20? (Hint: Use the finite correction factor since the sample size is more than 5% of the population size.)

• A) 0.0415
• B) 0.0016
• C) 0.0241
• D) 0.0171

Gain knowledge on capital budgeting decisions and the factors influencing these decisions.

Understand the concept of discounted cash flow valuation and its relevance to investment appraisal.

Recognize the limitations and applications of Average Accounting Return (AAR) in investment decisions.

Grasp the implications of cash flows timing on project valuation and the role of discount rates.

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent and salaries.

Relevant Costs

Future costs that will differ under various alternatives, considered important for making financial decisions.

Special Order

An order for goods or services that is outside the company's normal scope of operations or requires customization to meet the customer's specific requirements.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by the market, indicating underutilization of resources.