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The Closing Price of a Company's Stock Tomorrow Can Be

question 163

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The closing price of a company's stock tomorrow can be lower,higher or the same as today's closing price.Based on the closing price of the stock collected over the last month,25% of the days the closing price was higher than previous day's closing price,45% was lower than previous day's and 30% was the same as previous day's.Based on this information,the probability that tomorrow's closing price will be higher than today's is 25%.This is an example of using which of the following probability approach?


Definitions:

Budgeted Unit Sales

The projected quantity of sales units a company expects to sell over a specific period, often used in financial and sales planning.

Cash Collections

The total amount of money received by a company from its various sources, including sales, during a specific period.

Selling Price

The amount for which something is sold, establishing the revenue a company receives from the sale of a product or service.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the associated costs based on forecasted sales.

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