The Credit Term 2/10,n/30 Means

question 84

Multiple Choice

The credit term 2/10,n/30 means:

• A)That after 10 days 2% interest is charged.
• B)That there is a 10% discount if payment is received within 30 days.
• C)That there is a 2% discount if payment is received within 10 days,otherwise,full payment is due within 30 days.
• D)There is a 10% discount if paid immediately and 2% if paid within 30 days.

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Definitions:

Poisson Distribution

A probability distribution that measures the probability of a given number of events happening in a fixed interval of time or space, assuming events occur with a known constant mean rate and independently of the time since the last event.

Binomial Probability Distribution

A probability distribution showing the probability of x successes in n trials of a binomial experiment.

Skewed

Describes a distribution that is not symmetrical, with a long tail on either the right or left side, indicating that the data are not evenly distributed around the mean.

Probability Distribution

An equation in math that determines the chances of all the different possible results of a given experiment.