A Mail Order Company Tracks the Number of Returns It

question 21

Essay

A mail order company tracks the number of returns it receives each day.Information for the last 50 days shows $$\begin{array} { c c } \text { Number of returns } & \text { Number of days } \\\hline 0 - 99 & 6 \\100 - 199 & 20 \\200 - 299 & 15 \\300 \text { or more } & 9\end{array}$$
a.How many sample points are there?
b.List and assign probabilities to sample points.
c.What procedure was used to assign these probabilities?

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Definitions:

Production Orders

Refers to written instructions or authorization for the manufacturing of specific quantities of a product, often detailing specifications and schedules.

Period Costs

Expenses that are not directly tied to the production of goods and are expensed in the period they are incurred.

CEO Salary Expense

It represents the compensation costs recorded on the income statement for the chief executive officer's salary and related expenses.

Finished Goods

Items that have completed the manufacturing process but have not yet been sold or distributed to end-users.