A Lab Orders 100 Rats a Week for Each of the 52

question 103

Multiple Choice

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week. Interpret this value.

• A) Most of the weeks resulted in rat costs of $13.00.
• B) The median cost for the distribution of rat costs is $13.00.
• C) The expected or average cost for all weekly rat purchases is $13.00.
• D) The rat cost that occurs more often than any other is $13.00.

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Definitions:

Monthly Cash Expenses

The total of all cash outflows or expenditures that a company or individual incurs within a month.

Cash Burn

The rate at which a company spends its cash reserves before generating positive cash flow.

Cash Equivalents

Highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less.

Monthly Cash Expenses

The total amount of money spent by an individual or business in cash over the course of a month.