A CFO Is Looking at What Percentage of a Company's

question 90

Multiple Choice

A CFO is looking at what percentage of a company's resources are spent on computing. He samples companies in the pharmaceutical industry and develops the following stem-and-leaf display (leaf unit = 0.1) . If you were creating a frequency histogram using these data, how many classes would you create?

• A) 4
• B) 5
• C) 6
• D) 7
• E) 8

---

Definitions:

Marginal Revenue Product

The supplementary income realized by the application of one more unit of a resource, like labor or capital.

Labor

The engagement of human physical strength and intellectual power in producing goods and offering services.

Additional Revenue

The increase in total revenue that results from selling an additional unit of a product or service.

Profit-Maximizing Output

The level of production at which a company achieves the highest possible profit margin, given its costs and market demand.