As part of a promotion for a new type of cracker, free trial samples are offered to shoppers in a local supermarket. The probability that a shopper will buy a packet of crackers after testing the free sample is
0 .20. Different shoppers can be regarded as independent trials. Let X be the number among the next 100 shoppers who buy a packet of the crackers after tasting a free sample, then X has approximately a

• A.N(4, 20) distribution.
• B.N(20, 4) distribution.
• C.N(0.2, 16) distribution.

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A sample of the personnel files of eight male employees revealed that during a six month period, they lost the following number of days due to illness: 2, 0, 6, 3, 10, 4, 1 and 2. What is the mean absolute deviation (in days)?

• A.3 1/8
• B.1
• C.2 3/8

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If a closed-end mutual fund has a net asset value of $15 and is selling at a discount:

• A.the underlying securities are worth more than $15 per share
• B.the market price of the fund is less than $15 per share
• C.the market price of the fund is greater than $15 per share

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Which of the following statements is correct?

• A.A firm's cost of capital is not affected by the firm's investment policies.
• B.A firm's cost of capital is affected only by the firm's investment policies but it is independent of the firm's financing policies.
• C.A firm's cost of capital is affected by both the firm's financing and investment policies.

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An analyst gathered the following information about a company:
01/01/01 - 50,000 shares issued and outstanding at the beginning of the year
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04/01/01 - 5% stock dividend
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10/01/01 - 10% stock dividend
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What is the company's weighted average number of shares outstanding at the end of 2001?

• A.57,750.
• B.52,500.
• C.55,000.

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