A Study of a Company's Practice Regarding the Payment of Invoices

question 15

Multiple Choice

A study of a company's practice regarding the payment of invoices revealed that on the average an
Invoice was paid 20 days after it was received. The standard deviation equalled five days. A sample
Of 25 invoices is selected. Assuming that the distribution is normal, what percent of the sampled
Invoices were paid within 15 days of receipt?

• A) 100%
• B) 37.91%
• C) 34.13%
• D) 86.74%

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Definitions:

Regret Aversion

A psychological effect where individuals avoid making decisions that could result in action-based regret, affecting investment choices and risk-taking behaviors.

Short-Term Losses

Financial losses realized on the sale or exchange of an asset held for one year or less.

Making a Decision

The cognitive process of selecting a course of action from among multiple alternatives.

Less Than Optimal

A situation or outcome that does not achieve the best possible or most desired performance level.