In a Local Cellular Phone Area,company a Accounts for 60

question 2

Multiple Choice

In a local cellular phone area,company A accounts for 60% of the cellular phone market,while company B accounts for the remaining 40% of the market.Of the cellular calls made with company A,1% of the calls will have some sort of interference,while 2% of the cellular calls with company B will have interference.If a cellular call is selected at random and has interference,what is the probability that it was with company A?

• A)0.071
• B)0.429
• C)0.571
• D)It cannot be determined.

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Definitions:

Installment Sales

A method of sale where the buyer makes payments towards the total sale price in installments over time, while the seller recognizes revenue as payments are received.

Asset Impairment Test

A procedure carried out to determine if an asset's carrying amount is not recoverable and exceeds its fair value, necessitating a write-down to its fair value.

Deferred Tax Asset

A tax benefit stemming from temporary differences between accounting and tax calculations, which will result in deductible amounts in future tax payments.