The Owner of a Fish Market Determined That the Average

question 75

Short Answer

The owner of a fish market determined that the average weight for a catfish is 3.2 pounds with a standard deviation of 0.8 pound. Assuming the weights of catfish are normally distributed, the probability that a randomly selected catfish will weigh between 3 and 5 pounds is ________.

Understand the cash payback period and its usage in assessing investment recovery times.

Recognize the impact of the time value of money on capital budgeting techniques.

Identify and apply different approaches to capital budgeting including payback, net present value, and internal rate of return methods.

Analyze investment proposals using appropriate financial metrics and tables.

---

Definitions:

Rational Investor

An individual who makes investment decisions based on logical analysis and evidence to achieve an optimum level of benefit or utility.

Interest Rate

The percentage portion of a loan assigned as interest to the borrower, usually specified as an annual percentage of the outstanding amount of the loan.

Asset

Anything of value owned by individuals or firms that can be used or sold to produce positive economic value.

Geometric Series

A series of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the ratio.