For the Binomial Distribution with the Given Values for N $$\mathrm { n } = 20 \text { and } \mathrm { p } = 0.6$$

question 185

Multiple Choice

For the binomial distribution with the given values for n and p, state whether or not it is suitable to use the normal distribution as an approximation.
- $$\mathrm { n } = 20 \text { and } \mathrm { p } = 0.6$$

• A) Normal approximation is suitable.
• B) Normal approximation is not suitable.

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Definitions:

Standard Costs

Predetermined or estimated costs that are used as benchmarks for measuring the performance of actual costs in manufacturing or production.

Actual Costs

Actual costs are the real or true costs incurred for materials, labor, and overhead in the production of goods or provision of services, as opposed to estimated or standard costs.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used to analyze labor cost efficiencies or inefficiencies during production.

Standard Costs

Predetermined or budgeted costs serving as benchmarks for measuring performance, commonly used for budgeting and variance analysis.