The Overnight Shipping Business Has Skyrocketed in the Last Ten

question 206

Short Answer

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

Suppose that one customer who participated in the study is chosen at random. What is the probability that the customer did not have a high level of satisfaction with the company?
A) $\frac { 12 } { 35 }$

B) $\frac { 23 } { 35 }$

C) $\frac { 4 } { 7 }$

D) $\frac { 3 } { 7 }$

• A) \(\frac { 12 } { 35 }\)
• B) \(\frac { 23 } { 35 }\)
• C) \(\frac { 4 } { 7 }\)
• D) \(\frac { 3 } { 7 }\)

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Definitions:

Periodic FIFO

A method of inventory valuation where goods purchased first are assumed to be sold first, calculated periodically at the end of an accounting period.

Cost of Goods Sold

Costs directly related to the creation of products a company sells, which encompass both the cost of materials and labor.

Ending Inventory

The total value of all inventory, including raw materials, work-in-progress, and finished goods, remaining at the end of an accounting period.

LIFO Perpetual

An inventory costing method where the last items added to inventory are considered the first sold, continuously updated for each transaction.