Use the Following to Answer Questions

question 1

Multiple Choice

Use the following to answer questions:
Scenario: Accounting and Economic Profit
Rather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. Instead of using the capital for his own business, he could rent it to a rival firm and earn $5,000 a year. In his first year, his revenue was $150,000.
-(Scenario: Accounting and Economic Profit) Look at the scenario Accounting and Economic Profit. The economic profit of Wang's Wicker Furniture Store is:

• A) $67,000.
• B) $0.
• C) -$20,000.
• D) -$35,000.

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Definitions:

Extreme Values

The smallest or largest values in a data set or distribution, often considered as outliers or as significant for their rarity.

Variation

Variation refers to the extent to which data points in a data set differ from each other and from the mean of the dataset.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean value.

Standard Deviation

A quantification of the range or diversity in a dataset, illustrating the difference of the numbers from their mean value.