An entity has a contract to sell 200 bikes to a customer for $550 each and the customer has the right to return the bikes within 20 days for a full refund. On the basis of past experience the entity places the following probabilities on the number of bikes the customer is expected to return: Number of bikes returned Probability of outcome 0 25% 1 10% 2 38% 3 12% 4 15% Using the ‘expected value’ method, what will be the amount of variable consideration.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
An entity has a contract to sell 200 bikes to a customer for $550 each and the customer has the right to return the bikes within 20 days for a full refund. On the basis of past experience the entity places the following probabilities on the number of bikes the customer is expected to return:
Number of bikes returned
0 25%
1 10%
2 38%
3 12%
4 15%
Using the ‘
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