Each Salesperson in a Large Department Store Chain Is Rated

question 43

Multiple Choice

Each salesperson in a large department store chain is rated on their sales ability and their potential for advancement. The data for the 500 sampled salespeople are summarized in the following table. What is the probability that a salesperson selected at random will have an excellent potential for advancement given they also have above average sales ability?

• A) 0.27
• B) 0.60
• C) 0.404
• D) 0.45

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of operational, investment, and financing activities.