An Analyst Is Forecasting Net Income for Excellence Corporation for the Next

question 134

Multiple Choice

An analyst is forecasting net income for Excellence Corporation for the next fiscal year. Her low-end estimate of net income is $250,000, and her high-end estimate is $350,000. Prior research allows her to assume that net income follows a continuous uniform distribution. The probability that net income will be greater than or equal to $337,500 is ________.

• A) 12.5%
• B) 29.6%
• C) 87.5%
• D) 96.4%

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Definitions:

Avoidance Behaviors

Actions taken to prevent or avoid a perceived unpleasant or harmful event or outcome.

Punishment

The imposition of a penalty or negative consequence following undesirable behavior, aimed at reducing or eliminating that behavior.

Punishment Contrast

A phenomenon whereby a behavior that is suppressed through punishment in one situation increases in another situation in which punishment was not administered.

Suppression

A method or action taken to stop or reduce an undesired behavior or activity, often through the use of negative consequences or removal of positive reinforcement.