The results of a census of 2,500 employees of a mid-sized company with 401(k)retirement accounts are as follows: Suppose researchers are going to sample employees from the company for further study.
Based on the relative frequency assessment method,what is the probability that a randomly selected employee will have a 401(k)account balance of between $25,000 and $49,999?
A)0.1580
B)0.1040
C)0.6160
D)0.4040

Question

The results of a census of 2,500 employees of a mid-sized company with 401(k)retirement accounts are as follows:  Suppose researchers are going to sample employees from the company for further study.
Based on the relative frequency assessment method,what is the probability that a randomly selected employee will have a 401(k)account balance of between $25,000 and $49,999?
A)0.1580 
B)0.1040 
C)0.6160 
D)0.4040

Quizplus · Accepted Answer

To use the relative frequency assessment method, we need to calculate the proportion of employees with 401(k) account balances between $25,000 and $49,999.

From the table, we can see that there are 466 employees with balances between $25,000 and $49,999.

So, the proportion of employees with balances in this range is:

466/2500 = 0.1864

Therefore, the probability of randomly selecting an employee with a balance in this range is approximately 0.1864 or 0.1580 when rounded to the nearest thousandth.

Thus, the correct answer is A) 0.1580.

The Results of a Census of 2,500 Employees of a Mid-Sized