A Company Estimates That 50% of the Country Has Seen

question 165

Multiple Choice

A company estimates that 50% of the country has seen its commercial and that if a person sees its commercial, there is a 45% probability that the person will buy its product. What is the probability that a person chosen at random in the country will have seen the commercial and bought the product? Round your answer to four decimal places. ​

• A)0.0111
• B)0.0500
• C)0.4500
• D)0.5000
• E)0.2250

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Definitions:

Total Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Fixed Overhead Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Volume Variance

A measure used in budgeting and accounting to show the difference between expected (budgeted) and actual sales volumes, affecting revenue or costs.

Direct Labor Time Variance

The difference between the estimated time to complete a task and the actual time taken, affecting cost management in manufacturing.