The Number of Electrical Outages in a City Varies from Day

question 13

Multiple Choice

The number of electrical outages in a city varies from day to day.Assume that the number of electrical outages (x) in the city has the following probability distribution.

The mean and the standard deviation for the number of electrical outages (respectively) are

• A)2.6 and 5.77
• B)0.26 and 0.577
• C)3 and 0.01
• D)0 and 0.8

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Definitions:

After-Tax Discount Rate

A discount rate that takes into account the effect of taxes when evaluating the net present value of investments or projects.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which evenly spreads the cost over its useful life.

Initial Investments

The initial amount of money spent to start a project, purchase an asset, or establish a business venture, often before earning any returns.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquid funds available for operations.