Instruction 2-5
the Following Are the Durations in Minutes of a Sample

question 74

Multiple Choice

Instruction 2-5
The following are the durations in minutes of a sample of long-distance phone calls made within Australia reported by one long-distance carrier.
$$\begin{array}{l}\begin{array} { l c } &\text { Relative }\\\text { Time (in Minutes) } & \text { Frequency } \\\hline 0 \text { but less than } 5 & 0.37 \\5 \text { but less than } 10 & 0.22 \\10 \text { but less than } 15 & 0.15 \\15 \text { but less than 20 } & 0.10 \\\text { 20 but less than 25 } & 0.07 \\25 \text { but less than } 30 & 0.07 \\30 \text { or more } & 0.02\end{array}\end{array}$$
-Referring to Instruction 2-5,if 100 calls were sampled,________ of them would have lasted less than 15 minutes.

• A)10
• B)26
• C)74
• D)None of the above.

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Definitions:

Erratic Changes in Costs

Refers to unpredictable fluctuations in expense levels, which can impact profitability and budgeting in businesses.

Quick Assets

Assets that can be quickly converted into cash, such as marketable securities and receivables, excluding inventory.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash and close to their maturity.

Current Receivables

Refers to the money owed to a company that is expected to be received within a year.