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A Study of a Company's Practice Regarding the Payment of Invoices

question 88

Multiple Choice

A study of a company's practice regarding the payment of invoices revealed that on the average an invoice was paid 20 days after it was received. The standard deviation equalled five days. Assuming that the distribution is normal, what percent of the invoices were paid within 15 days of receipt?


Definitions:

Downward-Sloping Demand

A representation of the relationship between price and quantity demanded, indicating that as price decreases, demand increases.

Reasonable Substitutes

Alternative products or services that can satisfactorily replace others, meeting the same needs or wants.

TC (Total Cost) Curve

A graphical representation that shows the total cost of production at different levels of output.

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