Explain why event probabilities range from 0 to 1
What will be an ideal response?
The number 0 represents no chance of occurrence, while 1 represents a 100 percent chance of occurrence. Any number between 0 and 1 represents that particular event's chance of occurrence. Any negative number or number exceeding 1 has no meaning for an event probability.
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The United States v. Lopez case demonstrates which of the following?
a. There are no limitations on the federal government's power pursuant to the Interstate Commerce Clause. b. The states have extensive power to regulate interstate commerce. c. There are limitations on federal power. d. Gun ownership cannot be regulated.
Mitchell Florists & Co. reported assets of $1,000 and equity of $450. What is its debt ratio? (Round your percentage answer to two decimal places.)
A) 55.00% B) 45.00% C) 100.00% D) 60.00%
When you call your Internet provider to solve a technical problem and you end up talking to a technician in India or Romania, you have just experienced
A. Outsourcing. B. Telecommunications. C. Bilingual customer service. D. Service shift. E. Partnering.
Gleason Research regularly takes real options into account when evaluating its proposed projects. Specifically, it considers the option to abandon a project whenever it turns out to be unsuccessful (the abandonment option), and it evaluates whether it is better to invest in a project today or to wait and collect more information (the investment timing option). Assume the proposed projects can be abandoned at any time without penalty. Which of the following statements is CORRECT?
A. The abandonment option tends to reduce a project's NPV. B. The abandonment option tends to reduce a project's risk. C. If there are important first-mover advantages, this tends to increase the value of waiting a year to collect more information before proceeding with a proposed project. D. A project can either have an abandonment option or an investment timing option, but never both. E. Investment timing options always increase the value of a project.