THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 18

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You have recently joined a country club.The number of times you expect to play golf in a month is represented by a random variable with a mean of 10 and a standard deviation of 2.2.Assume you pay monthly membership fees of $500 per month and pay an additional $50 per round of golf.
-What is your average monthly bill from the country club?

• A)$700
• B)$800
• C)$900
• D)$1000

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Definitions:

Automating

Refers to the use of technology to perform tasks with minimal human intervention, typically to improve efficiency and reduce costs.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow equal to the cost of the investment.

Useful Life

The expected period over which an asset is estimated to be economically usable by one or more users, often influencing depreciation calculations.

Simple Rate Of Return

A method to evaluate the profitability of an investment, calculated by dividing the incremental annual income by the initial investment cost.