Refer to Scenario 7

question 23

Multiple Choice

Refer to Scenario 7.1 below to answer the questions that follow.
SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.
-Refer to Scenario 7.1. A yearly normal rate of return for your computer software firm would be

• A) $20,000.
• B) $40,000.
• C) $60,000.
• D) $100,000.

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Definitions:

Denotes Failure

Indicates an instance or condition of not meeting a desired or intended objective, often used in the context of tests or experiments.

Probability

A measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.

Scholarships

Financial grants provided to students based on academic or other achievements to support their education.

Variance

A statistical measure that describes the dispersion of data points in a dataset relative to their mean.