Find the Indicated Percentage for the Normally Distributed Variable

question 54

Multiple Choice

Find the indicated percentage for the normally distributed variable. Round your answer to two decimal places, if necessary.
-The monthly incomes of trainees at a local mill are normally distributed, with a mean of $1,100 and a standard deviation $150. What percentage of trainees earn less than $875 a month?

• A)93.32%
• B)99.7%
• C)6.68%
• D)6.86%

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Definitions:

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed manufacturing overhead as a period expense.

Absorption Costing

A method of accounting that encompasses the total manufacturing expenses, including direct materials, direct labor, along with both variable and fixed overhead costs, as part of a product's cost.

Net Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profitability from its operations.

Variable Costing

A costing method that includes only variable production costs in product costs, treating fixed costs as period expenses.