Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 106

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-A multiple choice test consists of 60 questions. Each question has 4 possible answers of which one is correct. If all answers are random guesses, estimate the probability of getting at least 20% correct.

• A)0.3508
• B)0.8508
• C)0.1492
• D)0.0901

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Definitions:

Cost of Goods Sold

Financial obligations directly related to producing a company’s saleable goods, encompassing material and labor costs.

Periodic Inventory System

A method of inventory valuation where updates to inventory levels and cost of goods sold are made periodically at the end of an accounting period, rather than after each sale or purchase.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting year.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead.