Find the Indicated Probability

question 87

Multiple Choice

Find the indicated probability.
-A IRS auditor randomly selects 3 tax returns from 54 returns of which 15 contain errors. What is the probability that she selects none of those containing errors? Round to four decimal places.

• A) 0.3767
• B) 0.0214
• C) 0.0183
• D) 0.3684

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Definitions:

Traditional Costing Method

A costing methodology that allocates overhead costs based on a single, volume-based cost driver, such as labor hours or machine hours.

Direct Labor-Hours

The total time workers spend on producing a product, directly correlating to the product itself.

Unit Product Cost

An expression of the total production cost (materials, labor, and overhead) divided by the number of units produced.

Traditional Costing Method

An accounting strategy that allocates overhead costs to products based on a predetermined rate, without considering the actual activities that incur costs.