A State Is Said to Be Absorbing If the Probability

question 22

True/False

A state is said to be absorbing if the probability of making a transition out of that state is zero.

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Definitions:

Required Return

The minimum profit or yield that investors expect to earn on an investment.

Unit Product Cost

The cost to produce a single unit of product, accounting for direct materials, direct labor, and overhead on a per-unit basis.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.

Required Return

The minimum rate of return needed from an investment to make it worthwhile for the investor.