A Company Collected the Ages from a Random Sample of Its

question 99

Multiple Choice

A company collected the ages from a random sample of its middle managers with the resulting frequency distribution shown below:
$$\begin{array} { l r } \text { Class Interval } & \text { Frequency } \\20 \text { to } < 25 & 8 \\25 \text { to } < 30 & 6 \\30 \text { to } < 35 & 5 \\35 \text { to } < 40 & 12 \\40 \text { to } < 45 & 15 \\45 \text { to } < 50 & 7\end{array}$$
-What is the midpoint of the third class interval?

• A)22.5
• B)27.5
• C)32.5
• D)37.5
• E)42.5

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Definitions:

Collection Policy

A set of guidelines that a company follows to manage the collection of accounts receivable or outstanding invoices.

Aging Schedule

A methodical layout of a company's accounts receivable broken down by their due dates, typically used to manage and identify overdue accounts that may become uncollectable.

Credit Cost Curve

A graphical representation of the trade-off between the credit costs against the recovery rate or the likelihood of default.

Credit Period

The time frame between the purchase of goods on credit and the payment for those goods, offered by suppliers to buyers as an incentive.