The Average Composite ACT Score for Ohio Students Who Took

question 33

Essay

The average composite ACT score for Ohio students who took the test in 2003 was 21.4.Assume that the standard deviation is 1.05. In a random sample of 25 students who took the exam in 2003, what is the probability that the average composite ACT score is 22 or more? (Make sure to identify the sampling distribution you use and check all necessary conditions.)

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Definitions:

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Absorption Costing

A product costing technique that adds up all manufacturing expenses — direct materials, direct labor, variable, and fixed overheads — into the comprehensive cost of the product.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues.

Variable Costing

A costing method in which all variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) are treated as product costs, while fixed overhead is treated as a period cost.