When the Discrete Random Variable Is Expressed in Terms of Dollars

question 85

Multiple Choice

When the discrete random variable is expressed in terms of dollars, the mean of the distribution is known as the ________ .

• A)expected monetary value
• B)average value of the distribution
• C)expected value of the distribution
• D)expected value of sample information

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.

Standard Hours

A measure used in accounting to indicate the expected amount of time required to complete a task or project.

Actual Hours

The total time spent on a specific task or job by workers, typically measured in hours.

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overhead allocated to production and the actual variable overhead incurred, based on the efficient use of the allocation base, such as labor-hours.