A Key Metric in the Cell Phone Industry Is Average

question 110

Multiple Choice

A key metric in the cell phone industry is average revenue per user (ARPU) which represents the average dollar amount that a customer spends per store visit. Recently, AT&T reported their ARPU was $67.81. Suppose the standard deviation for this population is $18.45. What is the probability that the ARPU will be between $62 and $66 from a random sample of 35 customers?

• A)0.3553
• B)0.4470
• C)0.5619
• D)0.2496

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Definitions:

Absorption Costing

A costing technique that encompasses both direct and indirect expenses associated with the production in the product's cost.

Contribution Margin

The amount by which sales revenue exceeds variable costs of a product, indicating how much revenue contributes toward covering fixed costs and generating profit.

Production Efforts

The exertion of labor and use of resources by a company towards the manufacturing of goods.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.