Each Salesperson in a Large Department Store Chain Is Rated

question 26

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 average sales ability and good potential for advancement?

• A) 0.09
• B) 0.12
• C) 0.30
• D) 0.525

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of the asset's cost to each year of its useful life.

Semiannually

Occurring twice a year; a term often used to describe the payment schedule of interest or dividends.

Amortization of Discount

The gradual reduction of a bond discount over its life, affecting the issuer's interest expense and balance sheet.