From a Portion of a Probability Distribution, You Read That

question 47

Multiple Choice

From a portion of a probability distribution, you read that P(demand = 0) is 0.05, P(demand = 1) is 0.10, and P(demand = 2) is 0.20. The two-digit random number intervals for this distribution beginning with 01 are

• A) 01 through 05, 01 through 10, and 01 through 20
• B) 00 through 04, 05 through 14, and 15 through 34
• C) 01 through 05, 06 through 15, and 16 through 35
• D) 00 through 04, 00 through 09, and 00 through 19
• E) 01 through 06, 07 through 16, and 17 through 36

---

Definitions:

Foregone Depreciation

The concept relating to the depreciation that could have been claimed for tax purposes but was not, often due to timing or election of different tax treatments.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Acquisition Cost

The total cost associated with acquiring a new asset or investment, including purchase price and all related expenses.

Historical Cost

An accounting principle that requires assets to be recorded at their original purchase price, without adjusting for inflation or changes in market value.