A Multiple-Choice Test Consists of Five Questions, Each with A-E

question 6

Multiple Choice

A multiple-choice test consists of five questions, each with A-E answers. If you guess the answer to each question, what is the probability of getting four or more questions correct?

• A) 5.1%
• B) 0.64%
• C) 0.032%
• D) Less than 1%
• E) None of the choices are correct

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of the activities.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including costs related to running a factory such as utilities, depreciation, and maintenance.

Direct Labour-Hours

The total hours worked directly on the production of goods or services.

External Reports

Financial documents that are prepared for parties outside the organization, such as shareholders and creditors.