Which of the Following Distributions Is Appropriate When the Probability

question 3

Multiple Choice

Which of the following distributions is appropriate when the probability of zero is very low, but the most likely value is just greater than zero?

• A) triangular distribution
• B) exponential distribution
• C) lognormal distribution
• D) beta distribution

---

Definitions:

Salvage Value

At the conclusion of its useful life, an asset's salvage value is the anticipated market price upon resale.

Service Revenue

Revenue generated by a business through the delivery of services to its clientele.

Prepaid Rent

An asset account that records rent payments made in advance for the use of property or space that hasn’t yet been incurred.

Adjusting Entry

An entry made in the journals to align the accounts with the true financial status by accounting for accrued or deferred items.