In View of Past Experience, It Is Expected There Will

question 25

Multiple Choice

In view of past experience, it is expected there will be a loss due to uncollectible accounts of an amount equal to one-half of one percent of the sales on account during the year. If the sales on account amounted to $250,000, the estimated uncollectible account losses would be

• A) $25.
• B) $1,250.
• C) $2,500.
• D) $25,000.

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Definitions:

Sample Mean

The average value of a set of observations derived from a sample.

Standard Deviation

An indicator of the spread or distribution range of a collection of data points, showing how far apart the values in the set are from each other.

Margin of Error

The maximum amount by which the sample results are expected to differ from the true population value.

Normally Distributed

Describes a distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.