Assume the Following Cost of Goods Sold Data for a Company

question 156

Multiple Choice

Assume the following cost of goods sold data for a company: $$\begin{array} { r r } 2017 & \$ 1,704,000 \\2016 & 1,400,000 \\2015 & 1,200,000\end{array}$$ If 2015 is the base year, what is the percentage increase in cost of goods sold from 2015 to 2017?

• A) 70.4%
• B) 42%
• C) 85.7%
• D) 117%

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Definitions:

Normal Curve

A bell-shaped curve that is symmetrical about the mean, representing the distribution of a continuous random variable.

Continuity Correction

An adjustment made when using a continuous probability distribution to approximate a discrete distribution.

Binomial Random Variable

A type of discrete random variable that represents the number of successes in a fixed number of binary experiments.

Normal Curve

A bell-shaped curve that represents a distribution of probabilities of a continuous random variable.