Onex Expects to Have an EBIT of $240,000 with a Standard

question 47

Multiple Choice

Onex expects to have an EBIT of $240,000 with a standard deviation of $90,000.The distribution of operating income is approximately normal.What is the probability that Onex will have an EBIT that is below $0?

• A)0.47%
• B)2.67%
• C)0.38%
• D)2.25%

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Definitions:

Continental Rift

A linear zone where the Earth's crust and lithosphere are being pulled apart and is an early stage of continental breakup.

Seismic Station

The location of a scientific instrument (seismograph) that measures seismic vibrations.

P-waves

Primary waves, or compressional waves, are the fastest seismic waves that travel through solids, liquids, and gases in a push-pull motion.

S-waves

Secondary or shear waves, a type of elastic wave that moves through the body of the Earth, used in the study of earthquakes and the Earth's interior.