Find the Expected Value and Standard Deviation of a Random

question 9

Multiple Choice

Find the expected value and standard deviation of a random variable.
-A small business just leased a new computer and color laser printer for three years.
The service contract for the computer offers unlimited repairs for a fee of $100 a year
Plus a $25 service charge for each repair needed. The company's research indicates that
During a given year 86% of these computers need no repairs, 9% need to be repaired
Once, 4% twice, 1% three times, and none required more than three repairs. The expected
Number of repairs for this kind of computer per year is

• A) 0.20 repairs.
• B) 0.55 repairs.
• C) 0.89 repairs.
• D) 1.00 repairs.
• E) 1.20 repairs.

Recognize how notes or accounts receivables from sales transactions are classified.

Understand the process and principles behind the recognition of receivables.

Comprehend the valuation and reporting of receivables in financial statements.

Grasp the allowance method for uncollectible accounts and its impact on financial statements.

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Definitions:

Highly Structured

Pertains to something organized in a clear, well-defined manner, often with strict rules or guidelines.

Several Years

A generic term referring to a period extending over multiple years, typically used to denote a significant duration of time.

Ineffective

Lacking the ability or qualities to produce the intended or desired result.

T-group

A form of group training where participants learn about group dynamics, leadership, and interpersonal relations through their interactions with each other.