A Key Metric in the Cell Phone Industry Is Average

question 88

Multiple Choice

A key metric in the cell phone industry is average revenue per user (ARPU) , which represents the average dollar amount that a customer spends per store visit. In 2011, AT&T reported their ARPU as $63.76. Suppose the standard deviation for this population is $22.50. What is the probability that the ARPU will be between $60 and $63 from a random sample of 38 customers?

• A) 0.5517
• B) 0.4168
• C) 0.2661
• D) 0.1515

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Definitions:

Stocks

Shares in the ownership of a company, representing a claim on the company's assets and earnings.

Composed

Pertains to being made up of several parts or elements.

Variance

A measure of how much values in a data set differ from the mean of the data set.

Binomial Distribution

A probability distribution that summarizes the likelihood of a value taking one of two independent states and is used for experiments that have two possible outcomes (success or failure).