Solve the Problem What Is the Probability That a Household Has an Annual

question 81

Multiple Choice

Solve the problem.
-The table below shows the results of a consumer survey of annual incomes in 100 households. $$\begin{array} { l | c } \text { Income } & \text { Number of households } \\\hline \$ 0 - 14,999 & 9 \\\hline \$ 15,000 - 24,999 & 25 \\\hline \$ 25,000 - 34,999 & 27 \\\hline \$ 35,000 - 44,999 & 25 \\\hline \$ 45,000 \text { or more } & 14\end{array}$$ What is the probability that a household has an annual income between $15,000 and $44,999 inclusive?

• A) 0.52
• B) 0.5
• C) 0.77
• D) 0.27

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Definitions:

T-account

A visual representation of a ledger account that displays its debit and credit sides to explain transactions.

Adjusted Cost of Goods Sold

The cost of goods sold adjusted for changes in inventory levels, often used in managerial accounting to reflect more accurate costs.

Overapplied Overhead

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process is greater than the amount of overhead cost actually incurred during a period.

Underapplied Overhead

A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process is less than the amount of overhead cost actually incurred during a period.