(I If There Is Absolutely No Chance a Person Will

question 13

Multiple Choice

(i. If there is absolutely no chance a person will purchase a new car this year, the probability
Assigned to this event is 0.5.
(ii. If the set of events are collectively exhaustive and mutually exclusive, the sum of the probabilities
Equals 1.
(iii) Suppose four heads did appear face up on the toss of a coin four times. The probability that a
Head will appear face up in the next toss of the coin is 1/2 or 0.5.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Gross Profit

The financial gain obtained after deducting the cost of goods sold from total sales revenue.

Intra-entity Inventory

Inventory transactions occurring between divisions or subsidiaries within the same parent company, which may need elimination during consolidation.

Goodwill

The excess of the purchase price of a business over the fair market value of its identifiable assets and liabilities, recognized as an intangible asset on the balance sheet.

Equity Method

An accounting technique used to record an investor's proportional share of an associate company's net income or loss on its financial statements.