TABLE 5-9 A Major Hotel Chain Keeps a Record of the Number

question 173

Multiple Choice

TABLE 5-9
A major hotel chain keeps a record of the number of mishandled bags per 1,000 customers. In a recent year, the hotel chain had 4.06 mishandled bags per 1,000 customers. Assume that the number of mishandled bags has a Poisson distribution.
-Suppose that past history shows that 6% of college students prefer Brand A Cola. A sample of 10,000 students is to be selected. Which of the following distributions would you use to figure out the probability that at least half of them will prefer Brand A cola?

• A) Hypergeometric distribution
• B) Poisson distribution
• C) Binomial distribution
• D) Uniform distribution

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Definitions:

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as depreciation of machinery and the salary of the factory manager.

Job Cost

The total cost of labor, materials, and overhead allocated to a specific job or project.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the accounting period begins based on estimated costs and activity levels.

Direct Labor-hours

Refers to the total hours worked by employees who are directly involved in the production process, directly affecting the manufacturing of goods.