In a Local Cellular Phone Area, Company a Accounts for 60

question 107

Multiple Choice

In a local cellular phone area, company A accounts for 60% of the cellular phone market, while company B accounts for the remaining 40% of the market. Of the cellular calls made with company A, 1% of the calls will have some sort of interference, while 2% of the cellular calls with company B will have interference. If a cellular call is selected at random, what is the probability that it will have interference?

• A) 0.014
• B) 0.986
• C) 0.14
• D) 0.028

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Definitions:

Financial Accounting

The branch of accounting that deals with summarizing, analyzing, and reporting business transactions to external entities, including investors and regulators.

Management Accounting

A field of accounting focused on providing financial data and advice to company managers for decision-making purposes.

Finance Manager

A professional responsible for managing the financial health of an organization, including planning, analysis, and decision making.

Financial Controller

A senior executive who oversees the accounting activities, financial reporting, and the development of internal control policies.