The Probability of an Outcome

question 22

Multiple Choice

The probability of an outcome:

• A) ranges between zero and one.
• B) is an intuitive guess on the part of the decision maker.
• C) measures the expected return from an outcome.
• D) reflect the degree of the manager's confidence.
• E) measures the degree of variation around the mean value.

---

Definitions:

Compute

To calculate or solve a problem using mathematical or logical operations.

Month

A unit of time used in calendars that is approximately based on the natural period related to the motion of the moon; months vary in length but are roughly around 30 days.

Internal Control System

A set of processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Policies and Procedures

Established guidelines and methods of operation adopted by an organization to ensure consistency and compliance with standards and regulations.