Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Un
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Car X can come with any of these 5 additional features: sunroof, stereo, tinted windows, leather seats and cruise control.
Quantity A : Number of different combinations possible
Quantity B : 25
A The quantity in Column A is greater
B The quantity in Column B is greater
C The two quantities are equal.
D The relationship cannot be determined from the information given.
Answer:
A The quantity in Column A is greater
Explanation:
Lets first analyze the number of different combinations possible!
To find out the combinations we use the following formula:
The number of ways to choose a sample of r elements from a set of n distinct objects where order does not matter.
Car X can have these 5 features: sunroof, stereo, tinted windows, leather seats and cruise control.
Car X has 2 options for each feature: Included or Not included
If car X has no feature at all then:
If car X has 1 feature included then:
If car X has 2 features included then:
If car X has 3 features included then:
If car X has 4 features included then:
If car X has all of the 5 features included then:
Now sum all the possible combinations: 1+5+10+10+5+1=32
So, quantity A is 32 and quantity B is 25
Therefore, we can conclude that the quantity in column A is greater