SCENARIO 19-1 A Local Newspaper Has 10 Delivery Boys Who Each Deliver

question 123

Multiple Choice

SCENARIO 19-1
A local newspaper has 10 delivery boys who each deliver the morning paper to 50 customers every day.The owner decides to record the number of papers delivered on time for a 10-day period for one of the delivery boys and construct a p chart to see whether the percentage is too erratic.

-Referring to Scenario 19-1,what is the numerical value of the center line for the p chart?

• A)0.926
• B)0.911
• C)0.885
• D)0.500

---

Definitions:

Face Amount

An amount at which bonds sell if the market rate equals the contract rate.

Dollar Amount

The value of a transaction or an item expressed in units of currency.

Allowance Method

An accounting technique that estimates and prepares for the amount of bad debts customers might not pay.

Direct Write-Off Method

The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.