Which Best Exemplifies a Subjective Probability

question 98

Multiple Choice

Which best exemplifies a subjective probability?

• A) The probability that a female aged 30 will have an accident in a week's car rental at Hertz.
• B) The probability that a pair of dice will come up 7 in a given throw.
• C) The probability that the summer Olympic games will be held in Chicago in 2020.
• D) The probability that a checked bag on Flight 1872 will weigh more than 40 pounds.

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Definitions:

Net Sales

Total revenues from sales transactions minus returns, allowances, and discounts.

Allowance Method

A method of accounting for bad debts that involves estimating and recording uncollectible accounts receivable as an expense.

Write-Off

An accounting action whereby the value of a bad debt or an asset is reduced to zero, acknowledging it as a loss.

Average Collection Period

The average time it takes for a company to receive payments from its customers.