A Markov Assumption Is That the Probabilities in Each Row

question 35

Multiple Choice

A Markov assumption is that the probabilities in each row sum to 1 because they are

• A) mutually exclusive.
• B) collectively exhaustive.
• C) mutually exclusive and collectively exhaustive.
• D) mutually exclusive or collectively exhaustive.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Accounts Receivable Period

The average amount of time that it takes for a company to receive payments owed by its customers.

Calendar Year

The period from January 1st to December 31st, used for financial and administrative purposes.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to obtain immediate cash.