A Consumer Agency Is Testing Appliances for a Series of Articles

question 7

Multiple Choice

A consumer agency is testing appliances for a series of articles in their magazine.Currently they are working with cooktops and ranges.They have selected 16 of the most commonly used models.Using a series of tests,the agency will estimate the lifetime of these models.A histogram of these (estimated) lifetimes is shown below. What is the proportion of these appliances that is estimated to last longer than 15 years?

• A)More than half
• B)Less than half
• C)Equal to 4/16 = 0.25
• D)It cannot be determined from this graph.

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Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate their ending inventory balances by applying a cost-to-retail price ratio to the retail value of the inventory.

Cost-to-retail Ratio

A method used to estimate the value of ending inventory based on the ratio of the cost of goods available for sale to the retail price of those goods.

Ending Inventory

The worth of products ready for sale at the close of an accounting cycle, determined by adding the initial inventory and purchases, then subtracting the cost of goods sold.

Retail Inventory Method

An accounting method used to estimate inventory value by calculating the cost to retail price ratio.