What Is the Break-Even Probability of Collection When the Present

question 48

Multiple Choice

What is the break-even probability of collection when the present value of revenues from a sale is $100,000 and the present value of cost is $87,000?

• A) 1.00
• B) 0.87
• C) 0.74
• D) 0.13

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Definitions:

Smallest Variance

The smallest degree of spread or dispersion of observations around the mean in a dataset, indicating less variability.

Relatively Efficient

Refers to a process or system that achieves its goals with comparatively minimal waste of time, resources, or energy.

Larger Sample

Refers to increasing the number of observations in a sample to reduce random sampling error and make the sample statistics more representative of the population.

Sample Variance

A measure of the dispersion or spread in a set of sample data, calculated by averaging the squared deviations from the sample mean.