Anderson Heating and Cooling Anticipates That Cash Flows from Home

question 61

Multiple Choice

Anderson Heating and Cooling anticipates that cash flows from home heating fuel sales next year will be $800,000 if the winter is mild, $1 000,000 if winter is average and $1 500,000 if winter is exceptionally cold.The probability of an average winter is 60%, while the probability of either a mild or an exceptionally cold winter is 20%.What is Anderson's expected cash flow from fuel sales next winter?

• A)$1 060,000
• B)$1,100,000
• C)$1,000,000
• D)$1,150,000

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Definitions:

Ladder Rung

A component of a ladder diagram in programmable logic controllers, representing a condition leading to an output action.

XIC Instruction

In programmable logic controllers (PLCs), an "Examine if Closed" instruction that checks if a specific input condition is true or a contact is closed.

XIO Instruction

An instruction in PLC programming that stands for "Examine if Open," used to check if a condition is false.

PLC Chassis

The structural frame that holds and organizes the components of a Programmable Logic Controller, including its power supply, processors, and modules.