Suppose That the Amount of Time It Takes to Process

question 23

Essay

Suppose that the amount of time it takes to process insurance claims is normally distributed with a mean of 12 weeks and a variance of 9 weeks.What is the probability that the next claim will be processed within
a.10 weeks?
b.11 weeks?
c.12 weeks?
d.23 weeks?

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Definitions:

Profits

The financial gain made in a transaction or business operation after subtracting all expenses from revenue.

Units Produced

The total quantity of finished goods a manufacturing process produces in a specific period, reflecting production levels and efficiency.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production output, such as rent, salaries of supervisory staff, and equipment depreciation.

Absorption Costing

An approach in accounting that factors in every production cost, from raw materials and direct labor to both kinds of manufacturing overheads, variable and fixed, into the price of a product.