The Internal Auditing Staff of a Local Manufacturing Company Performs

question 25

Multiple Choice

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are delinquent more than 90 days overdue. The historical records of the company show that over the past 8 years, 14 percent of the accounts are delinquent. For this quarter, the auditing staff randomly selected 250 customer accounts.
-What is the probability that at least 30 accounts will be classified as delinquent?

• A)0.3186
• B)0.1814
• C)0.8186
• D)0.6372
• E)0.7584

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Definitions:

All You Can Afford

This is a budgeting approach where advertising spending is based on the amount of funds a company has available, rather than being tied to specific performance objectives.

Evaluation Stage

Part of the consumer decision process where alternatives are appraised and weighed before making a final purchasing decision.

Hierarchy of Effects

A model that outlines the sequential stages a consumer goes through in the process from unawareness of a brand to purchase decision, including awareness, interest, desire, and action.

Adoption

The acceptance and integration of new ideas, technologies, or products into regular use by consumers or within an organization.