Suppose the Likelihood That Someone Who Logs onto a Particular

question 221

Multiple Choice

Suppose the likelihood that someone who logs onto a particular site on the Internet will purchase an item is 0.10.If the site has 200 people accessing it in the next day,what is the probability that less than 24 customers will make a purchase?

• A)0.5008
• B)0.1736
• C)0.8264
• D)0.2461

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Definitions:

Direct Labor

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Direct Materials

The raw materials that are directly incorporated into a finished product during the manufacturing process.

Fixed Overhead

Indirect costs that do not change with the level of production, such as rent and salaries.

Variable Overhead

Indirect operating costs that vary with the level of production activity, such as utilities and materials.