A New Phone System Was Installed Last Year to Help

question 64

Multiple Choice

A new phone system was installed last year to help reduce the expense of personal calls that were being madeby employees. Before the new system was installed, the amount being spent on personal calls followed anormal distribution with an average of $500 per month and a standard deviation of $50 per month. Refer tosuch expenses as PCEʹs (personal call expenses) . Using the distribution above, what is the probability that arandomly selected month had a PCE of between $375.00 and $590.00?

• A) 0.9579
• B) 0.0421
• C) 0.9999
• D) 0.0001

---

Definitions:

Finished Goods Units

Products that have completed the manufacturing process and are ready to be sold to customers.

Sales Budget

A detailed projection of anticipated sales, used for planning and managing resources in a business.

Optimistic Sales Budget

A sales budget that is prepared with the expectation of achieving the best-case scenario in sales volume and revenue.

Excessive Inventories

Situation where a company holds a larger quantity of inventory than necessary, which can tie up capital and increase holding costs.