Assume That the Inventory Balance at the End of the Year

question 102

Multiple Choice

Assume that the Inventory balance at the end of the year is $125,000, and that it has increased by 5% during the year. The Inventory balance at the beginning of the year was closest to:

• A)$119,048.
• B)$131,579.
• C)$131,250.
• D)$118,750.

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Definitions:

Variance

A statistical measure that represents the dispersion of a set of data points or investment returns around their mean, indicating their spread or risk.

Indifference Curve

An indifference curve represents a graphical depiction of different bundles of goods between which a consumer is indifferent, reflecting their preferences for those goods' combinations.

Mean-Standard Deviation Graph

A graphical representation used in finance to show the risk (standard deviation) and return (mean) of different investments.

Utility Function

A mathematical representation of a decision-maker's preference ranking for a set of outcomes or goods, reflecting their attitude towards risk.