A Bowl Has Eight Ping Pong Balls Numbered 1, 2

question 44

Short Answer

a bowl has eight ping pong balls numbered 1, 2, 2, 3, 4, 5, 5, 5. You pick a ball at random.
-Find E(X), where X = the number on the ball you draw.

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Definitions:

Uncollectible Receivables

Accounts receivable that a company does not expect to collect and writes off as a loss.

Credit Sales

Sales transactions where the payment is deferred to a future date, typically resulting in the creation of accounts receivable.

Allowance for Doubtful Accounts

An allowance for doubtful accounts is a contra-account that reduces the total receivables on the balance sheet by the amount that is estimated to be uncollectible.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.