Laura Strubel Is Reviewing Some Data from a Marketing Research

question 38

Multiple Choice

Laura Strubel is reviewing some data from a marketing research report she obtained that shows the age of persons who frequently purchase her company's product, Strubel's Gourmet Seafood frozen dinners. Laura is considering buying radio time for a new ad campaign, and knowing the age of the target market would be very helpful to her in selecting which stations should run the ads. Laura sees that the mean age of frequent buyers is 45 with a standard deviation of 12. She correctly interprets this to mean that 68 percent of her target market fall between the ages of:

• A) 39 to 51
• B) 45 to 68
• C) 33 to 57
• D) 33 to 56
• E) 45 to 57

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Definitions:

Inventory Holding Period

Inventory holding period measures the average time a company holds inventory before selling it, reflecting the efficiency of inventory management and its impact on cash flow.

Payables Deferral Period

The average length of time between a firm’s purchase of materials and labor and the payment of cash for them. It is calculated by dividing accounts payable by credit purchases per day (cost of goods sold/365).

Line of Credit

A flexible loan arrangement with a financial institution that allows a borrower to draw upon funds up to a specified limit at their discretion.

Financial Strength

The ability of an entity to meet its financial obligations, often evaluated through metrics like liquidity ratios, solvency ratios, and profitability.