Excel's = RAND()function Produces Random Numbers That Are Uniformly Distributed

question 91

Multiple Choice

Excel's = RAND() function produces random numbers that are uniformly distributed from 0 to 1.What is the probability that the random number exceeds 0.75?

• A)75 percent
• B)50 percent
• C)25 percent

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Definitions:

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, reflecting purchases and sales within that period.

Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all similar items in inventory.

Periodic Inventory System

An inventory system that records inventory purchases and sales periodically, updating the inventory balance at the end of an accounting period.

Average Cost

A method to determine the cost of goods sold and ending inventory by computing the weighted average of the costs of all goods available for sale.