Sure Stone Tire Company Has Established That the Useful Life

question 86

Multiple Choice

Sure Stone Tire Company has established that the useful life of a particular brand of its automobile tires is normally distributed with a mean of 40,000 kilometres and a standard deviation of 5000 kilometres.What is the probability that a randomly selected tire of this brand has a life between 30,000 and 50,000 kilometres?

• A)0.5000
• B)0.4772
• C)0.9544
• D)0.9772
• E)1.0000

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet to reflect only amounts expected to be collected.

Aging of Accounts Receivable

A method to categorize and manage accounts receivable based on how long an invoice has been outstanding, helping businesses identify delays in payments.

Maturity Value

The amount payable to an investor at the end of a fixed-term investment, including the principal and any interest accrued.

Notes Receivable

Claims against debtors documented by promissory notes, which promise the future inflow of cash.