Exhibit 1-5
the Following Is a Frequency Distribution of the Monthly

question 5

Multiple Choice

Exhibit 1-5
The following is a frequency distribution of the monthly expenditures for long distance telephone service of 200 households in Chattanooga.
$\begin{array}{|c|c|c|}\hline\text { Class } & \text { Expenditure \$) } & \text { \# of households } \\\hline 1 & 0 \text { and under } 20 & 42 \\\hline 2 & 20 \text { and under 40 } & 64 \\\hline 3 & 40 \text { and under } 60 & 34 \\\hline 4 & 60 \text { and under } 80 & 28 \\\hline 5 & 80 \text { and under } 100 & 20 \\\hline 6 & 100 \text { and over } & 12\\\hline\end{array}$
-Refer to Exhibit 1-5. What is the proportion of households with monthly expenditure for long distance service of either below $60 or at least $100?

• A) .70
• B) .76
• C) .84
• D) .53

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Definitions:

Normal Production

Normal Production refers to the average amount of goods or services produced during a specific period under typical operating conditions.

Favourable Variances

Differences between expected and actual performance that are beneficial to a company's financial health.

Cost of Goods Sold

The immediate expenses related to creating the products a company sells, such as materials and labor.

Producing Efficiently

The process of manufacturing goods or delivering services in a way that minimizes waste, resources, and time while maximizing productivity and quality.