Provide an Appropriate Response

question 8

Essay

Provide an appropriate response.
-Under what conditions are you allowed to use the normal distribution to approximate the binomial distribution? Under what conditions might you want to use the normal distribution to approximate the binomial as opposed to using the binomial probability formula, a table of binomial probabilities, or a computer?

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Definitions:

Current Sales

The total revenue generated from sales activities in the most recent accounting period.

Break-Even Point

The production level at which total revenues equal total expenses, and the company makes neither a profit nor a loss.

Sales Mix

The combination of different products or services that a company sells, represented as percentages of total sales.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance premiums.