Alex Is in a Hurry to Get to Work and Is

question 116

Multiple Choice

Alex is in a hurry to get to work and is rushing to catch the bus. She knows that the bus arrives every six minutes during rush hour, but does not know the exact times the bus is due. She realizes that from the time she arrives at the stop, the amount of time that she will have to wait follows a uniform distribution with a lower bound of 0 minutes and an upper bound of six minutes. What is the probability that she will have to wait more than two minutes?

• A) 0.1667
• B) 0.3333
• C) 0.6667
• D) 1.0000

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Definitions:

Recorded as Revenue

The recognition of income when earned by the company, typically upon delivery of goods or completion of services.

Installment Sales Method

The installment sales method is an accounting technique used to recognize revenue and expenses for sales made on credit, wherein income is recognized as installment payments are received.

Recognizing Profit

The process of formally acknowledging and recording income on the financial statements when it is earned, regardless of when the cash is received.

Reasonably Assured

A level of certainty in the ability to achieve a particular outcome, often used in the context of revenue recognition and lease agreements.