Find the Indicated Probability If One of the 1064 People Is Randomly Selected, Find

question 36

Multiple Choice

Find the indicated probability.
-The table below describes the smoking habits of a group of asthma sufferers. $\begin{array}{r|ccccc} & \text { Occasional } & \begin{array}{c}\text { Regular } \\\text { smoker }\end{array} & \begin{array}{c}\text { Heavy } \\\text { smoker }\end{array} & \text { smoker } & \text { Total } \\\hline \text { Men } & 380 & 48 & 63 & 42 & 533 \\\text { Women } & 360 & 34 & 90 & 47 & 531 \\\text { Total } & 740 & 82 & 153 & 89 & 1064\end{array}$ If one of the 1064 people is randomly selected, find the probability that the person is a man or a heavy smoker.

• A) 0.545
• B) 0.506
• C) 0.585
• D) 0.472

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Definitions:

Contribution Approach

A managerial accounting method that separates fixed costs from variable costs to determine the contribution margin per unit and overall contribution towards fixed costs and profits.

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Variable Administrative Expenses

Expenses within the administration sector that fluctuate with the level of business activity, like sales commissions.