A Company's Past Experience Indicates That 70% of Its Credit $$\begin{array} { l r } \text { January } & \$ 100,000 \\\text { February } & 90,000 \\\text { March } & 110,000\end{array}$$

question 42

Multiple Choice

A company's past experience indicates that 70% of its credit sales are collected in the month of sale and 28% in the next month.The remainder is never collected.The company's budgeted credit sales totalled: $$\begin{array} { l r } \text { January } & \$ 100,000 \\\text { February } & 90,000 \\\text { March } & 110,000\end{array}$$ How much are expected cash receipts for February?

• A)$102,200
• B)$88,200
• C)$93,800
• D)$91,000

---

Definitions:

Margin of Error

A measure of the range of values below and above the sample statistic in a confidence interval; it quantifies uncertainty in estimates.

Standard Error

A measure of the variability or dispersion of a sample statistic from the population parameter.

Confidence Interval

A set of values, obtained from sample data, that probably includes the value of an unspecified population parameter, given a certain confidence level.

Point Estimate

A solitary figure or statistical measure employed to approximate the worth of a population parameter.