Examlex
Let X represent the number of computers in an Australian household, for those that own a computer. a. Find and interpret the expected number of computers in a randomly selected Australian household.
b. Find the variance of the number of computers in a randomly selected Australian household.
Payback Criterion
A capital budgeting method that measures the time required to recoup the initial investment in a project.
Mutually Exclusive
Referring to events or choices that cannot occur or be taken simultaneously; selecting one option excludes the availability or selection of the other.
Payback Cutoff
The maximum acceptable period within which an investment should recover its initial costs, used as a criterion for investment decisions.
Net Present Values
The calculation of the present value of an investment's expected cash flows minus the initial investment cost.
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