An Accounting fiRm Is Planning for the Next Tax Preparation

question 75

Multiple Choice

An accounting firm is planning for the next tax preparation season. From last year's returns, the firm
Collects a systematic random sample of 100 filings. The 100 filings showed an average preparation
Time of 90 minutes with a standard deviation of 140 minutes.
What is the probability that the mean completion time is between 1 and 2 hours, i.e., 60 and 120
Minutes?

• A) Approximately 1
• B) 0.1664
• C) 0.8336
• D) 0.9676

---

Definitions:

Long-Run Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service in different markets or to different groups of consumers, based on long-term market conditions.

Price Elasticities

Measures that indicate how much the quantity demanded or supplied of a good responds to changes in its price.

Original Buyers

Individuals or entities that are the first to purchase a particular product or asset from its initial point of sale.

Nondiscriminating

Pertaining to market practices or policies that do not differentiate between customers on any basis, often used in the context of uniform pricing.