The Amount Spent on Textbooks for the Fall Term Was

question 69

Multiple Choice

The amount spent on textbooks for the fall term was recorded for a sample of five hundred university students. It was determined that the 75th percentile was the value $500. Which of the following interpretations of the 75th percentile is correct?

• A) 75% of the students sampled had textbook costs that exceeded $500.
• B) 75% of the students sampled had textbook costs equal to $500.
• C) 25% of the students sampled had textbook costs that exceeded $500.
• D) The average of the 500 textbook costs was $500.

---

Definitions:

Trading Securities

Financial assets that are purchased by an entity not for long-term investment but rather with the intention to sell them in the near term to make a profit.

Fair Value

The estimated market value of an asset or liability based on current market prices or valuations.

Fiscal Year

A one-year period used for accounting purposes and preparing financial statements, not necessarily aligning with the calendar year.

Equity Method

An accounting technique used to record the investments in other entities where the investor has significant influence but not full control.