If the Daily Returns on the Share Market Are Normally

question 33

Multiple Choice

If the daily returns on the share market are normally distributed with a mean of 0.05% and a standard deviation of 1.00%, the probability that the share market would have a return of -23.00% or worse on one particular day (as it did on Black Monday) is approximately ________.

• A)0.0%
• B)0.1%
• C)1.0%
• D)10.0%

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Definitions:

Actual Direct Labour Hours

Actual direct labor hours refer to the real number of labor hours spent by workers directly involved in the production process.

Standard Cost System

An accounting system that uses standard costs for product costs, facilitating budgeting and performance evaluation.

Direct Labour Hours

The total time workers spend producing a product or service, which directly correlates to the production.

Labour Efficiency Variance

A metric that assesses the difference between the expected amount of labor time to produce a given level of output and the actual labor time used.