The StJoe Company Grows Pine Trees and the Average Annual Increase

question 73

Multiple Choice

The St.Joe Company grows pine trees and the average annual increase in tree diameter is 3.1 inches with a standard deviation of 0.5 inches.A random sample of n = 50 trees is collected.What is the probability of the sample mean being less the 2.9 inches?

• A)0.4977
• B)0.0023
• C)0.9977
• D)0.9954

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Definitions:

Tax Rate

The proportionality of income subject to tax for either a person or a business.

Discount Rate

This refers to the interest rate applied for computing the present value of forthcoming cash flows in the context of discounted cash flow analysis.

Present Value

The current valuation of future monetary sums or cash flow streams, using a given return rate for discounting.

Capital Cost Allowance (CCA)

A taxable expense in Canada that a business can claim for the depreciation of tangible property.