Exhibit 5-1 The Following Represents the Probability Distribution for the Daily Demand

question 109

Multiple Choice

Exhibit 5-1
The following represents the probability distribution for the daily demand of microcomputers at a local store.
-Refer to Exhibit 5-1. The probability of having a demand for at least two microcomputers is

• A)0.7
• B)0.3
• C)0.4
• D)1.0

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's main operations.

Investment Turnover

A ratio measuring the ability of a company to generate sales or revenue from its investments, usually indicating how efficiently the investments are used.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Profit Margin

A ratio or percentage that measures the profitability of a business, calculated by dividing net income by revenue.