THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 215

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The production manager at a local manufacturing plant is concerned about work stoppages in the four production lines.In particular,the manager is evaluating the likelihood of the next stoppage occurring on production line 1.
-Based on his knowledge of the causes of stoppages,the manager states that the probability that production line 1 is stopped next is 25%.This is an example of:

• A)subjective probability.
• B)classical probability.
• C)relative frequency probability.
• D)Bayesian probability.

---

Definitions:

Broker's Commissions

Fees charged by a broker for executing transactions or providing specialized services.

Price Concessions

Discounts or adjustments in the price of a good, service, or security, often granted to finalize a deal.

Effective Spread

The measure of the actual cost of a trading transaction, calculated as the difference between the executed trade price and the midpoint of the best bid and ask quotes at the time of the trade.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.