Use the Normal Distribution to Approximate the Desired Probability

question 6

Multiple Choice

Use the normal distribution to approximate the desired probability.
-A coin is tossed 20 times. A person, who claims to have extrasensory perception, is asked to predict the outcome of each flip in advance. She predicts correctly on 14 tosses. What is the probability of being correct 14 or more
Times by guessing? Does this probability seem to verify her claim?

• A) 0.0582, no
• B) 0.4418, yes
• C) 0.4418, no
• D) 0.0582, yes

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Definitions:

Budgeted Overhead

An estimate of the total indirect costs expected during a specific period for the efficient operation of a business.

Volume Overhead Variance

The difference between the budgeted and actual fixed manufacturing overhead costs, attributed to changes in production volume.

Manufacturing Overhead

Any expenses related to the production process that are not direct materials or direct labor costs.

Direct Labor Hours

The total hours of work performed by employees directly involved in manufacturing goods or providing services.