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Answer :
Final answer:
The proportion of return transactions is 20 divided by the total number of transactions (70), which simplifies to 2/7. The correct answer is (a) 20/70.
Explanation:
The proportion of return transactions is the ratio of the number of return transactions to the total number of transactions (sum of return and sales transactions). In the given scenario, there are 20 return transactions and 50 sales transactions. To determine the proportion, we add both types of transactions to get the total: 20 (return) + 50 (sales) = 70 transactions in total.
Now, the proportion of returns is the number of return transactions divided by the total transactions, which is 20/70. This can be simplified by dividing both the numerator and the denominator by their greatest common divisor, which is 10. So, the simplified proportion is 2/7.
Therefore, the correct answer is (a) 20/70, which simplifies to 2/7.
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