(I a New Computer Game Has Been Developed and Its

question 93

Multiple Choice

(i. A new computer game has been developed and its market potential is to be tested by 80 veteran
Game players. If sixty players liked the game, the probability that veteran game players will like the
New computer game is 3/4 or 0.75.
(ii. A probability that is based on someone's opinion, guess or hunch is joint.
(iii) The probability that a one-spot or a two-spot or a six-spot will appear face up on the throw of
One die is 1/2 or 0.5.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (i) and, (ii) are correct statements but not (iii).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Flexible Budget

A budget designed to adapt by varying in response to the company's activity levels or volume changes.

Revenue and Spending Variances

The difference between the budgeted and actual figures of revenue and expenditure, used for financial planning and control.

Manufacturing Overhead

All indirect costs related to the manufacturing process, excluding direct labor and direct materials.

Spending Variance

The difference between the budgeted or planned amount of spending and the actual amount spent over a specific period, often analyzed in budgeting and financial management.