SCENARIO 2-5
the Following Are the Duration in Minutes of a Sample

question 154

Multiple Choice

SCENARIO 2-5
The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. $$\begin{array} { l c } \text { Time(inMinutes) } & \begin{array} { c } \text { Relative } \\\text { Frequency }\end{array} \\\hline 0 \text { but less than } 5 & 0.37 \\5 \text { but less than } 10 & 0.22 \\10 \text { but less than } 15 & 0.15 \\15 \text { but less than } 20 & 0.10 \\20 \text { but less than } 25 & 0.07 \\25 \text { but less than } 30 & 0.07 \\30 \text { or more } & 0.02\end{array}$$
-Referring to Scenario 2-5, if 100 calls were randomly sampled, how many calls lasted 15 minutes or longer?

• A)10
• B)14
• C)26
• D)74

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Definitions:

Overhead

The ongoing administrative and operational costs not directly attributable to the production of goods or services, such as rent and utilities.

Residual Income

The income that remains after deducting all required costs of capital from operating profits, often used to assess divisional or project performance.

Average Total Assets

A financial metric calculated by averaging a company's total assets at the beginning and end of the accounting period.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding direct production costs, such as rent, utilities, and payroll expenses.