The Mean Life of a Particular Brand of Light Bulb

question 78

Multiple Choice

The mean life of a particular brand of light bulb is 1000 hours and the standard deviation is 50 hours.It can be concluded that at least 89% of this brand of bulbs will last between ___.

• A)900 and 1100 hours
• B)950 and 1050 hours
• C)850 and 1150 hours
• D)800 and 1200 hours
• E)1050 and 1250 hours

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the gain from the investment by its cost.

Absorption Costing

An approach to product costing that compounds all expenses involved in manufacturing, such as direct materials, labor costs, and all types of overheads, into the product’s final cost.

Markup

The discrepancy between the selling price and the production cost of a product or service, shown as a percentage of the production cost.