Shown Below Is the Sales Forecast for Kalin Inc On Average, 50% of Credit Sales Are Paid for in the First

question 128

Multiple Choice

Shown below is the sales forecast for Kalin Inc. for the first four months of the coming year.
$\begin{array}{lrrrrrr}&\text { Jan } & \text { Feb } & \text { Mar } & \text { Apr }\\\text { Cash sales } & \$ 15,000 & \$ 24,000 & \$ 18,000 & \$ 14,000 \\\text { Credit sales } & \$ 100,000 & \$ 120,000 & \$ 90,000 & \$ 70,000\end{array}$

On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: (CMA adapted)

• A) $138,000.
• B) $122,000.
• C) $119,000.
• D) $108,000.

Understand how sample size affects the confidence interval.

Recognize the importance of random sampling in the construction of confidence intervals.

Understand the concept of cause-and-effect in various contexts.

Identify the structure of paragraphs, focusing on topic sentences and supporting details.

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Definitions:

Monte Carlo Simulation

A computational technique that uses random sampling and statistical modeling to estimate mathematical functions and simulate the behavior of complex systems.

Cumulative Probability

The probability of an event occurring up to a certain point in time or over a range of values, often visualized through a cumulative distribution function.

Monthly Sales

The total volume or dollar value of all sales transactions made by a business within a month, used as an indicator of business performance and market demand.

Probability

The likelihood or chance of a specific outcome occurring, usually expressed as a ratio or percentage.