A Local Unemployment Office Keeps Track of the Number of New

question 16

Multiple Choice

A local unemployment office keeps track of the number of new claims filed each day. Based on data collected, it determines that the expected number of new claims filed per
Day is 2.4 with a standard deviation of 0.8688. Suppose that the office is open five days
Per week. The expected number of new claims filed per week at this office is

• A) 7.4.
• B) 4.344.
• C) 12.
• D) 10.
• E) 5.25.

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Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain range; such costs are incurred regardless of business activity levels.

Break-even Point

The point at which total income matches total costs, leading to a situation where there is no gain or deficit.

Variable Cost

Costs that vary directly with the level of production or the volume of services rendered, such as raw materials and direct labor.

Fixed Costs

Costs that remain constant regardless of the amount of products or services a company generates, including expenses like lease payments, wages, and premiums.