Each Salesperson in a Large Department Store Chain Is Rated

question 42

Multiple Choice

Each salesperson in a large department store chain is rated with respect to sales potential for
Advancement. These traits for the 500 salespeople were cross classified into the following table.
What is the probability that a salesperson selected at random has above average sales ability and is
An excellent potential for advancement?

• A) 0.20
• B) 0.50
• C) 0.27
• D) 0.75

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Definitions:

Marginal Costs

The increase in total cost that arises from an extra unit of production.

Average Variable Costs

The total variable costs (costs that change with output level) divided by the quantity of output produced.

Average Total Costs

The total cost of production divided by the number of units produced, indicating the cost per unit.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced; these costs do not vary with the level of output.