A Company Is Considering Producing a New Children's Bar Soap

question 30

Multiple Choice

A company is considering producing a new children's bar soap.A market research firm has told the company that if they perform a survey, a positive survey of a favorable market occurs 65 percent of the time.That is, P(positive survey | favorable market) = 0.65.Similarly, 40 percent of the time the survey falsely predicts a favorable market; thus, P(positive survey | unfavorable market) = 0.40.These statistics indicate the accuracy of the survey.Prior to contacting the market research firm, the company's best estimate of a favorable market was 50 percent.So, P(favorable market) = 0.50 and P(unfavorable market) = 0.50.Using Bayes' theorem, determine the probability of a favorable market given a favorable survey.

• A)0.62
• B)0.38
• C)0.53
• D)0.65

Understand the principles and applications of variable and standard costing systems.

Calculate and analyze sales price, sales volume, and overhead variances.

Determine the fixed and variable components of costs using a flexible budget.

Identify and understand the limitations and advantages of a standard costing system.

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Definitions:

Thalamus

A part of the brain that acts as a relay station, processing sensory and motor signals and regulating consciousness and sleep.

Waking Consciousness

A state of alertness and awareness to one's environment and self during the waking hours.

Altered State

A condition of consciousness that is significantly different from the normal waking state, such as that induced by meditation, drugs, or hypnosis.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which is fundamental to emotional intelligence.