What Is the Probability of an Item Failing in Less

question 28

Multiple Choice

What is the probability of an item failing in less than 5 hours if it has a constant failure rate of 1/hour?

• A) 0.00674
• B) 0.99127
• C) 0.99326
• D) 0.99642

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Definitions:

Fixed Manufacturing Overhead

The portion of total manufacturing overhead costs that do not vary with the level of production or output.

Work in Process

Inventory account containing goods that are in the manufacturing process but are not yet complete.

Standard Costs

Predetermined or budgeted costs used for cost control and decision-making, serving as a benchmark for measuring performance.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, reflecting changes in material prices.