On Any Given Day We Know a Salesman Can Earn

question 109

Multiple Choice

On any given day we know a salesman can earn $0 with a 40% probability,$100 with a 20% probability or $300 with 40% probability.His expected earnings equal

• A) $0.
• B) $140.
• C) $300.
• D) It cannot be determined from the available information.

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Definitions:

Bank Checking Account

A bank account that allows for numerous withdrawals and deposits, often used for daily transactions.

Pre-Printed Checks

Checks printed by the bank or another provider with the payer’s account information before the payer fills in the details of the payee, amount, and signature.

Cash Over And Short

An account that records discrepancies between the actual amount of cash received and the expected amount based on sales records.

Miscellaneous Expense

Expenses that do not neatly fit into specific categories, often minor in nature and not regularly recurring.