Randall Realty Has Two Rental Properties Available

question 46

Multiple Choice

Randall Realty has two rental properties available.The agent assesses a 0.6 probability that property A will be rented by the end of the month, and a probability of 0.8 that property B will be rented by the end of the month.She also believes there is a 0.5 probability that both properties will be rented by the end of the month.Is the renting of property A independent of the renting of property B?

• A)Yes, since P(A rents given B rents) is equal to P(A rents).
• B)No, since P(A rents given B rents) is not equal to P(B rents).
• C)No, since P(A rents given B rents) is not equal to P(A rents).
• D)Yes, since P(A rents given B rents) is equal to P(B rents).
• E)Yes, since P(B rents given A rents) is equal to P(B rents).

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Definitions:

Standard Labor-Hours

The predetermined amount of time expected to be spent on a specific task or production process, used for planning and efficiency analysis.

Actual Output

The real quantity of goods or services produced within a specified period.

Variable Overhead Rate

A rate used to assign variable overhead costs to units of production, based on an activity driver such as labor hours or machine hours, fluctuating with changes in production activity.

Overhead Efficiency

The effectiveness with which a business uses its overhead expenses to produce goods or services.