From a Portion of a Probability Distribution, You Read That

question 59

Multiple Choice

From a portion of a probability distribution, you read that P(demand = 1) is 0.05, P(demand = 2) is 0.15, and P(demand = 3) is .20. The cumulative probability for demand = 3 would be which of the following?

• A) 0.133
• B) 0.200
• C) 0.400
• D) 0.600
• E) Cannot be determined from the information given.

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Definitions:

Flexible Benefits Program

A benefits plan that allows employees to choose from a range of benefit options to customize their compensation package according to their personal needs and preferences.

Stock Options

These are contracts that give the holder the right to buy or sell shares of a stock at a predetermined price within a specific time period.

Option Holders

Individuals or entities that possess the rights to execute the purchase or sale of a specific asset at a specified price before the option expires.

Stock Ownership Plans

Employee benefit plans that provide workers with an ownership interest in the company through stock ownership, often aimed at improving employee motivation and loyalty.