David's Gasoline Station Offers 4 Cents Off Per Litre If

question 5

Multiple Choice

David's gasoline station offers 4 cents off per litre if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one-hour period twenty-five customers buy gasoline at this station. This situation is an example of what type of discrete probability distribution?

• A) Continuous probability distribution
• B) Poisson probability distribution
• C) Binomial probability distribution
• D) Hypergeometric probability distribution

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Definitions:

Gross Profit

The revenue from sales minus the cost of goods sold, indicating the efficiency of a company's core operations.

Intra-entity Sales

Sales transactions occurring between two parts of the same entity, often involving the transfer of goods or services.

Equity Method

A method for recording investments in which the investor acknowledges its share of investee profits and losses in proportion to its ownership.

Income Recognition

The process by which revenue is accounted for and recorded on the financial statements in the period it is earned and can be reliably measured.