THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 50

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The following table presents the probability distribution function for the number of claims processed per hour at an insurance agency.

-What is the variance of the number of claims processed?

• A)3.6211
• B)2.0819
• C)1.4428
• D)1.9029

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Definitions:

Predetermined Overhead Rate

A rate used to allocate indirect costs to products or services, estimated before the costs are incurred.

Direct Material

Raw materials directly used in the manufacturing of a product, explicitly traceable to the goods being produced.

Direct Labor

Labor costs directly tied to the production of goods or services, such as wages for assembly line workers.

Probability Distributions

Mathematical functions that provide the probabilities of occurrence of different possible outcomes for an experiment.