In a Marketing and Sales Model,which of the Following Might

question 43

Multiple Choice

In a marketing and sales model,which of the following might be a good choice for a discrete distribution to model the random timing of sales?

• A) RAND()
• B) Normal distribution
• C) Binomial distribution
• D) Exponential distribution
• E) Poisson distribution

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Definitions:

Risk-Free Asset

A Risk-Free Asset is an investment that theoretically guarantees its return and has no variance in its expected payout, typically government-issued securities.

Asset Beta

A measure of the risk of an asset isolated from the firm's financial risk, particularly useful in capital asset pricing models (CAPM).

Risk-Free Asset

An investment with a guaranteed return, without any risk of financial loss.

Positive Rate

An interest rate or yield that is above zero, reflecting a positive return on investment.