Provide an Appropriate Response $\$ 1.6$ Million with a Standard Deviation Of

question 14

Multiple Choice

Provide an appropriate response.
-One year, professional sports players salaries averaged $\$ 1.6$ million with a standard deviation of $\$ 0.7$ million. Suppose a sample of 100 major league players was taken. Find the approximate probability that the average salary of the 100 players exceeded $\$ 1.1$ million.

• A) approximately 1
• B) approximately 0
• C) \(0.2357\)
• D) \(0.7357\)

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Definitions:

Activity Index

A measure used to understand the level of activity in a particular area, such as production or sales, often used in planning and forecasting.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Target Net Income

The specific amount of net income that a company aims to achieve within a certain period.

Margin Of Safety

A financial ratio or metric that measures the difference between actual sales and the breakeven point, indicating the extent to which sales can decline before a business incurs a loss.