The Tread Life of a Particular Brand of Tire Is

question 123

Multiple Choice

The tread life of a particular brand of tire is a random variable best described by a normal distribution with a mean of 60,000 miles and a standard deviation of 1700 miles. What is the probability a certain tire of this brand will last between 56,430 miles and 56,940 miles?

• A) .0180
• B) .9813
• C) .4920
• D) .4649

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Definitions:

Overhead Costs

Indirect expenses related to the general operation of a business, such as rent, utilities, and insurance.

Activity-Based Costing System

A costing methodology that assigns overhead and indirect costs to specific activities related to the production of goods or services, enhancing the accuracy of cost information.

Activity Cost

The expense associated with a specific business operation or activity, often identified in activity-based costing.

Processing Orders

Refers to the sequence of steps undertaken by a business to fulfill customer purchase requests efficiently.