A large industrial firm allows a discount on any invoice that is paid within 30 days.Of all invoices, 10% receive the discount.In a company audit, 15 invoices are sampled at random.The mean (average)value of the number of the 15 sampled invoices that receive discount is _______
A)1
B)3
C)1.5
D)2
E)10

Question

Quizplus · Accepted Answer

The mean value of the number of invoices receiving a discount in a sample of 15 is calculated by multiplying the total number of invoices (15) by the probability of receiving a discount (10% or 0.1). This gives 15 * 0.1 = 1.5.

A Large Industrial Firm Allows a Discount on Any Invoice