Suppose That in a Certain Part of the World, in Any

question 101

Multiple Choice

Suppose that in a certain part of the world, in any 50-year period the probability of a plague is 0.39, the probability of a famine is 0.52, and the probability of both a plague and a famine is 0.15.What is the probability of a famine given that there is a plague?

• A)0.240
• B)0.288
• C)0.370
• D)0.385
• E)0.760

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Definitions:

Continuing Operations

The segments or activities of a business expected to continue for the foreseeable future, excluding any discontinued operations.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized or accounted for.

Conservatism

An accounting principle that dictates to recognize expenses and liabilities as soon as possible, but revenues and assets only when they are assured of being received.

Gross Profit Method

A technique used to estimate the amount of inventory a business has by applying the gross margin ratio to the cost of goods sold.