Asked by Sydnee Smith on Jul 17, 2024
Verified
In the forecast chart for the cumulative net profit for year 2,you first anchor the right grabber at infinity,enter 70 in the Certainty box,and then hit the enter button.The above set of action determines the ________.
A) cumulative profit in the second year that we are likely to realize with a probability of at least 0.30
B) cumulative profit in the second year that we are likely to realize with a probability of at least 0.70
C) probability that the product will show a cumulative net profit in the second year
D) number of trials shown in the cumulative net profit forecast chart for year 2
Cumulative Net Profit
The total amount of profit or loss made over a given period after all expenses are taken into account.
Probability
The quantification of the chance that an event happens, indicated by a numerical range from 0 to 1.
- Recognize how to interpret forecast charts for making probabilistic assessments about future values such as net profit and NPV (Net Present Value).
Verified Answer
AS
Alyssa SanchezJul 23, 2024
Final Answer :
B
Explanation :
Anchoring the right grabber at infinity means considering all possible outcomes, entering 70 in the Certainty box means we are certain to achieve at least that much profit, and hitting enter means calculating the cumulative net profit that we are likely to realize with a probability of at least 0.70.
Learning Objectives
- Recognize how to interpret forecast charts for making probabilistic assessments about future values such as net profit and NPV (Net Present Value).