Answer: 2,725

## Explanation The correct answer is C (2,725). Here's the detailed calculation: **Step 1: Sort the Data** The profits in ascending order are: $2,600, $2,700, $2,800, $3,800, $4,300, $9,900 **Step 2: Assign Percentiles** Using the method where we anchor the first observation at 0% and the last at 100%, with equally spaced in-between values: - 0% - $2,600 - 20% - $2,700 - 40% - $2,800 - 60% - $3,800 - 80% - $4,300 - 100% - $9,900 **Step 3: Locate the 25% Quantile** The 25% quantile falls between the 20% and 40% points, which correspond to $2,700 and $2,800 respectively. **Step 4: Linear Interpolation** - The difference between 40% and 20% is 20 percentage points - The difference between the corresponding values is $2,800 - $2,700 = $100 - The 25% quantile is 5 percentage points above the 20% point (25% - 20% = 5%) - Proportion of the interval: 5% / 20% = 0.25 - Value at 25% = $2,700 + (0.25 × $100) = $2,700 + $25 = $2,725 Therefore, the 25% quantile of the profits is $2,725.

Author: Tanishq Prabhu