The Daily Sales of a Small Retail Store in Toronto

question 56

Multiple Choice

The daily sales of a small retail store in Toronto for the last 365 days are normally distributed with a mean of $2,050, and a standard deviation of $300. i. What is the probability of daily sales exceeding $2,500?
ii. From a sample of 49 days, what is the probability of having a sample mean less than $2,500?

• A) 0.4332, 0.0668
• B) 0.0668, 0.9332
• C) 0.4332, approximately 100%
• D) 0.0668, Approximately 0%
• E) 0.0668, Approximately 100%

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Definitions:

Cash Collection

The process of receiving cash payments from customers, typically related to sales or services provided.

Trust Receipts

Documents that acknowledge the receipt of goods but allow the buyer to sell or process the goods before payment is made to the seller.

Floor Plan

Financing method used by dealerships that allows them to have a stock of vehicles on their floors for sale; it is a type of short-term financing.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.