The Amount Spent on Textbooks for the Fall Term Was

question 122

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

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Definitions:

Budgeted Purchases

An estimate of the total purchases a business plans to make during a certain time period.

Amount Collected

The total money received or gathered from various sources, such as payments or sales.

Direct Materials Purchases

The acquisition of raw materials that are directly incorporated into a finished product during the manufacturing process.

Budgeted Cash Disbursements

An estimation of all cash payments that a business expects to make over a specified period, often part of a cash flow forecast or budget.