Walter, a Luthier, Is Assigned with the Task of Building

question 33

Multiple Choice

Walter, a luthier, is assigned with the task of building ten apartments in six months. He is given a budget of $1,500,000 to buy the necessary raw materials required for building ten apartments of same quality. In a period of four months, Walter is able to complete 75 percent of the work and spends $1,250,000 in the process. The project that Walter is working on has a spending variance of _____.

• A) $350,000
• B) $150,000
• C) $430,000
• D) $125,000
• E) $500,000

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Definitions:

Continuous Probability Distribution

Describes the probability distribution of a continuous random variable, indicating the likelihood of the variable taking on a range of continuous values.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events occur with a known constant mean rate and independently of the time since the last event.

Binomial Distribution

A statistical distribution that represents the chances of a value adopting one of two distinct states across a certain amount of observations.

Hypergeometric Distribution

A probability distribution used for sampling without replacement, describing scenarios with two outcomes.