Normally Distributed Observations Such as a Person's Weight, Height or Shoe

question 123

Multiple Choice

Normally distributed observations such as a person's weight, height or shoe size occur quite
Frequently in nature. Business people who are aware of this use it to their advantage. A purchasing
Agent for a college bookstore buying 300 golf shirts used the normal curve to decide on the order
Quantities for the various sizes. If men's average shirt size is 15.5 with a standard deviation of .50,
How many shirts should be ordered in sizes over 16.5?

• A) 7
• B) 8
• C) 9
• D) 10
• E) 6

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes by interest expenses.

Acid-Test Ratio

A financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payments after a sale has been made.

Average Accounts Receivable

The mean amount of money owed to a company by its customers over a specific period, indicating the efficiency of credit policies.