Two Percent of the Customers of a Store Buy Cigars

question 23

Multiple Choice

Two percent of the customers of a store buy cigars. Half of the customers who buy cigars buy beer. 25 percent who buy beer buy cigars. Determine the probability that a customer buys beer.

• A) 0.25
• B) 0.01
• C) 0.04
• D) 0.50
• E) 0.005

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Definitions:

Raw Materials Costs

The expenses associated with acquiring raw materials required to manufacture a product.

Manufacturing Overhead

All the manufacturing costs except raw material and direct labor.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation, and salaries for production supervisors.

Direct Labor

The wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.