The Following Table Shows the Distribution of Household Incomes for a Sample

question 84

Multiple Choice

The following table shows the distribution of household incomes for a sample of 1,000 households in the U.S. with incomes up to $100,000.

Use this information to estimate, to the nearest $1,000, the average household income for such households.

• A) \(\$ 32,000\)
• B) \(\$ 40,000\)
• C) \(\$ 38,000\)
• D) \(\$ 31,000\)
• E) \(\$ 42,000\)

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Definitions:

Expected Activity

The projected level of activity or volume of work anticipated for a certain period, often used for planning and budgeting purposes.

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.

Batch Setup

The process of preparing equipment and machinery for a specific batch of production, including configuration and adjustments.