Major League Baseball Salaries Averaged $3

question 20

Multiple Choice

Major league baseball salaries averaged $3.26 million with a standard deviation of $1.2 million in a recent year. Suppose a sample of 100 major league players was taken. Find the approximate probability that the mean salary of the 100 players was less than $2.5 million.

• A) Approximately 0
• B) 0.0151
• C) 0.9849
• D) Approximately 1

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Definitions:

Discount Period

The time frame in which a payment can be made at a reduced rate.

Contra-revenue Account

An account that offsets revenue accounts on the income statement, such as sales returns, allowances, and discounts.

Sales Returns

Goods returned by customers after purchase, leading to a reduction in sales revenue.

Debit Balance

An accounting entry that represents the total amount debited from an account, exceeding the credits made into it.