An Office of Six People Is Plagued by High Absenteeism

question 223

Multiple Choice

An office of six people is plagued by high absenteeism.It is thought that the probability that an employee is absent on a particular day is 0.03.Assuming that the event that one person is absent on a particular day is independent of the absence of any other employee,what is the probability that at least one employee is absent tomorrow?

• A)0.121
• B)0.180
• C)0.150
• D)0.167

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Definitions:

Direct Fixed Expenses

Costs that are directly associated with a specific department or segment of a business and do not vary with the level of production or sales.

Cash Flow

The aggregate money movement into and out of a company, notably impacting its cash on hand.

Excess Capacity

The availability of more production capacity within a business than is currently needed to meet demand.

Special Order

An order for a product or service that is outside the company's normal scope of work, often requiring a unique set of costs and pricing.