The Management of a Grocery Store Has Kept a Record

question 32

Essay

The management of a grocery store has kept a record of bad checks received per day for a period of 200 days.The data are shown below.

a.Develop a probability distribution for the above data.
b.Is the probability distribution that you found in Part "a" a proper probability distribution? Explain.
c.Determine the cumulative probability distribution F(x).
d.What is the probability that in a given day the store receives four or less bad checks?
e.What is the probability that in a given day the store receives more than 3 bad checks?

Understand the concept and legal implications of collateral contracts.

Distinguish between voluntary and involuntary assignments and their legal effects.

Explain the principle of vicarious performance and its relevance in contractual obligations.

Discuss the development and scope of the doctrine of privity in contract law and its exceptions.

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Definitions:

High-Low Method

A technique in cost accounting used to estimate fixed and variable cost components of a product or service based on the highest and lowest levels of activity.

Variable Cost Elements

Expenses that change in proportion to the amount of goods produced or the volume of sales.

Fixed Cost Elements

Costs that do not change with the level of production or sales activity within a certain range or over a certain period.

Telephone Costs

Expenses related to the usage of telecommunication services by a business, categorized as utility expenses and recorded in the income statement.