The Overnight Shipping Business Has Skyrocketed in the Last Ten

question 9

Multiple Choice

The overnight shipping business has skyrocketed in the last ten years. The single greatest predictor of a company's success is customer service. A study was conducted to determine the customer satisfaction levels for one overnight shipping business. In addition to the customer's satisfaction
level, the customers were asked how often they used overnight shipping. The results are shown below in the following table:

$\begin{array} { c | c c c | c } & { \text { Satisfaction level } } & \\\text { Frequency of Use } & \text { High } & \text { Medium } & \text { Low } & \text { TOTAL } \\\hline < 2 \text { per month } & 250 & 140 & 10 & 400 \\2 - 5 \text { per month } & 140 & 55 & 5 & 200 \\> 5 \text { per month } & 70 & 25 & 5 & 100 \\\hline \text { TOTAL } & 460 & 220 & 20 & 700\end{array}$

A customer is chosen at random. Given that the customer uses the company two to five times per month, what is the probability that the customer expressed medium satisfaction with the company?

• A) \(\frac { 11 } { 140 }\)
• B) \(\frac { 1 } { 4 }\)
• C) \(\frac { 73 } { 140 }\)
• D) \(\frac { 11 } { 40 }\)

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Definitions:

Prime Interest Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark in lending rates.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market that borrowers must pay to obtain funds.

Recognized Gain

The profit realized from the sale of an asset, calculated by subtracting the asset's cost from its selling price and officially recorded in financial statements.

Boot

Additional value or cash that is exchanged in a transaction to even out a trade or sale.