Before a New Phone System Was Installed, the Amount a Company

question 50

Multiple Choice

Before a new phone system was installed, the amount a company spent on personal calls followed a normal distribution with an average of $500 per month and a standard deviation of $50 per month. Refer to such expenses as PCE's (personal call expenses) . Find the point in the distribution below which 2.5% of the PCE's fell.

• A) $402.00
• B) $598.00
• C) $12.50
• D) $487.50

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Definitions:

Board Meeting

A formal gathering of the board of directors of an organization, company, or corporation to discuss and decide on company policy and management issues.

Liable

Being legally responsible or obligated.

Sarbanes-Oxley Act

A U.S. federal law that aims to protect investors by making corporate disclosures more reliable and accurate, enhancing financial transparency and accountability.

Audit Committee

A subcommittee of a company's board of directors responsible for overseeing financial reporting, audit processes, and compliance with laws and regulations.