A Telemarketer Is Almost Through with Her Entire Shift,and She

question 66

Multiple Choice

A telemarketer is almost through with her entire shift,and she has not made a single sale.Her manager says that she has a good chance of making a sale on her last few phone calls because she is due.Is her manager right?

• A)No,because the Probability Assignment Rule applies in the long-run,not in the short-run.
• B)Yes,because the Law of Averages is valid for independent events.
• C)No,because there is no Law of Large Numbers for independent events.
• D)Yes,because the Law of Large Numbers is valid for independent events.
• E)No,because there is no Law of Averages for independent events.

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Definitions:

Capital Stock

The total amount of shares a company can issue, as authorized by its corporate charter.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Debts Of Entity

Financial obligations that a company or individual owes to external parties or creditors.

Monetary Unit Assumption

An accounting principle that assumes money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis.