The JO Supplies Company Buys Calculators from a Foreign Supplier

question 58

Multiple Choice

The J.O. Supplies Company buys calculators from a foreign supplier. The probability of a defective calculator is 10%.
-If 100 calculators are selected at random,what is the expected number of defectives?

• A)2
• B)4
• C)6
• D)8
• E)10

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Definitions:

Cash Flows

Financial statement entries that represent the net amount of cash and cash equivalents being transferred into and out of a business.

Credit Evaluations

Assessments conducted to determine the creditworthiness of individuals or entities, analyzing their ability to repay debts based on past and current financial activity.

Lending Decisions

The process undertaken by financial institutions to assess the creditworthiness of potential borrowers and decide whether to extend credit.

Long-term Borrowing

Debt obtained by a company with repayment terms extending beyond one year, used to finance the company's long-term investments and operations.