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.

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Definitions:

Direct Approach

A method of financial reporting or problem solving that involves straightforward, clear communication without indirectness.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments not included in cash equivalents.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of a company.

Operating Activities

Financial transactions and events related to the core business functions of a company, as reported in the cash flow statement.