Use This Information and Output to Answer the Following Questions

question 39

Multiple Choice

Use this information and output to answer the following questions.
Rentals-R-Us specializes in 4WD car rentals.The number of rentals per month typically ranges between 10 and 50.You may assume equal probability for the number of rentals to assume any value in that range.The monthly operating costs for Rentals-R-Us can range anywhere from $2,000 to $4,000,with $3,000 being the most probable cost.Each rented vehicle generates $55 in revenues.You decide to build a simulation model in Crystal Ball to simulate monthly profits.
$$\begin{array} { | l | l | c | } \hline & { \text { A } } & \text { B } \\\hline 1 & \text { Rentals-R-Us } & \\\hline 2 & \text { Number of car rentals } & 50 \\\hline 3 & \text { Rental per car } & \$ 55 \\\hline 4 & \text { Monthly operating costs } & \$ 2,000 \\\hline 5 & \text { Profit or loss } & \$ 750 \\\hline\end{array}$$
-Refer to the table.What is the appropriate distribution for the variable "Number of car rentals"?

• A)continuous uniform
• B)discrete uniform
• C)normal
• D)binomial
• E)triangular

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Definitions:

Standard Labor Hours

The predetermined amount of time expected to complete a task or produce a unit of goods under normal conditions.

Manufacturing Cost Variance

The difference between the actual manufacturing costs and the standard or budgeted costs.

Actual Costs

The realized expenses incurred during the production or acquisition of goods and services.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark to assess the performance of actual costs.