Sophi Finds a Chest Inscribed "Captain Hook" That Contains $500,000

question 37

Multiple Choice

Sophi finds a chest inscribed "Captain Hook" that contains $500,000 of cash while fishing off the shore around New Orleans. The US Customs and the DEA denied knowledge of the cash, so Sophi keeps it.
I.Sophi will not recognize any gross income if the chest contained jewels valued at $500,000, rather than cash at the time of discovery.
II.Recognition is necessary because this is a treasure trove and it is comprised of cash.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Observed Frequencies

The number of occurrences or instances of data points in specified categories or intervals as collected from experiments or surveys.

Consumer Panel Preferences

Insights or tendencies displayed by a group of consumers, often collected for market research.

Cafes

Retail establishments that primarily serve coffee and tea along with light snacks and sometimes more substantial meals.

Significance Level

In statistical hypothesis testing, it's the probability of rejecting the null hypothesis when it is actually true, often represented by the symbol alpha (α).