Use Bayes's Rule to Find the Indicated Probability

question 36

Multiple Choice

Use Bayes's rule to find the indicated probability.
-A person must select one of three boxes, each filled with clocks. The probability of box A being selected is 0.33, of box B being selected is 0.17, and of box C being selected is 0.5. The probability of Finding a red clock in box A is 0.2, in box B is 0.4, and in box C is 0.9. A box is selected. Given that
The box contains a red clock, what is the probability that box A was chosen?

• A)0.066
• B)0.33
• C)0.133
• D)0.113

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Definitions:

Overhead Applied

The portion of manufacturing overhead costs allocated to each unit of production based on a predetermined rate or method.

Machine-Hours

A measure of production activity that represents the hours machines are operating to manufacture products.

Job-Order Costing System

An accounting system that calculates the cost of individual jobs or batches in manufacturing or service sectors, tracking direct materials, direct labor, and overhead per job.

Predetermined Overhead Rate

An estimated rate used to apply manufacturing overhead to products or job orders, calculated before a period begins based on expected costs and activity levels.