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:

Absorption Costing

A bookkeeping approach that incorporates all expenses related to production, including direct materials, direct workforce, and variable along with fixed overhead costs, into the product's cost.

Income Reported

Refers to the total revenue recognized by an entity within a specific reporting period, often found in financial statements.

Operations

Refers to the day-to-day activities involved in running a business, including production, sales, and administration functions.

Variable Costing

An accounting method that only includes variable costs in the cost of goods sold and analyzes fixed costs separately.