Use the Following Information to Answer the Question

question 24

Multiple Choice

Use the following information to answer the question. Suppose that the probability that a person books a hotel using an online travel website is 0.68. For the questions that follow, consider a sample of fifteen randomly selected people who recently booked a hotel.
-Out of fifteen randomly selected people, how many would you expect to use an online travel website to book their hotel, give or take how many? Round to the nearest whole person.

• A)10 people, give or take 3 people
• B)9 people, give or take 3 people
• C)5 people, give or take 2 people
• D)10 people, give or take 2 people

---

Definitions:

Cost-Based Transfer Prices

Pricing methods for transactions within an organization based on the costs incurred in producing or acquiring the transferred goods or services.

Standard Variable Cost

The estimated average variable cost per unit of output, factoring in material, labor, and overhead expenses.

Mark-Up

The percentage added to the cost of goods to determine the selling price, covering overhead and profit.

Agreed Transfer Price

The price at which goods or services are transferred between departments within a company or between affiliated companies.