Find the Expected Value

question 20

Multiple Choice

Find the expected value.
-A new light bulb has been found to have a 0.02 probability of being defective.A shop owner receives 500 bulbs of this kind.How many of these bulbs are expected to be defective?

• A)10
• B)100
• C)20
• D)500

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Definitions:

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.

Customer Margin

The profit generated from a particular customer, calculated by subtracting the costs directly associated with serving them from the revenue they generate.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities and resources that contribute to their creation and delivery.

Activity Cost Pools

Groupings of individual costs based on the activities that drive them, used in activity-based costing to allocate costs more accurately.