ABS specializes in repair and maintenance of industrial machines. One repair technician has been assigned to five identical grinding machines for repair and maintenance. The machine breaks down after about 20 hr of use, and breakdowns have a Poisson probability distribution. It takes 6 hr to repair a machine, and repair times follow an exponential distribution. Machine downtime costs the company $250 an hour, and the technician is paid $50 an hour. Determine the average cost per hour of downtime.
A. $500.34
B. $532.50
C. $234.50
D. $675.50
B. $532.50
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Convertible bonds give the issuing corporation the option of calling for redemption at a stated price before maturity date
a. True b. False Indicate whether the statement is true or false
A bond which has a deferred call
A) does not have to be redeemed when it reaches maturity. B) can be retired at any time prior to maturity provided six months notice is given. C) cannot be retired for a specific period of time after which it can be retired at any time. D) can be retired at any time during the initial call period but after that time can not be redeemed prior to maturity.
The FDA had approved a new diet drug for the market. The agency pulled the approval and the drug off the market because a staff member said, "This drug didn't work for me." The manufacturer of the drug could challenge the FDA action: A) as arbitrary and capricious
B) on the basis of a failure to follow ADA procedures. C) lack of substantial evidence. D) Any of the above
The cash value of a life insurance policy is a cheap source of money.
Answer the following statement true (T) or false (F)