North Dakota Mining (NDM) Describes Its Estimate of the Amount

question 128

Multiple Choice

North Dakota Mining (NDM) describes its estimate of the amount of oil it will produce next year from its western North Dakota operations with a normal distribution.The distribution is centered on 5.2 million barrels and has a standard deviation of .7 million barrels.According to this distribution, there is a .005 probability that NDM's production will be greater than how many millions of barrels?

• A)6.4
• B)7.0
• C)6.1
• D)7.5
• E)6.8

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Definitions:

Departmental Income Statements

Financial statements that show the operating results of each department within a company, highlighting revenues and expenses.

Profit Center

A branch or division of a business that is responsible for generating its own revenue and profit.

Cost Center

A department within an organization that does not directly add to profit but still incurs costs.

Indirect Expenses

Expenses that cannot be traced directly to one department.