Suppose That 24% of All Sales in a Grocery Store

question 152

Essay

Suppose that 24% of all sales in a grocery store are for amounts greater than $100.In a random sample of 50 invoices,what is the probability that more than ten of the invoices are for over $100? Use the normal approximation for the binomial distribution.

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Definitions:

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold (COGS) associated with producing those goods.

Variable Costing

A method of accounting that encompasses only the variable costs of production, such as direct materials, direct labor, and variable overhead, in the computation of product costs.

Net Income

The net earnings of a business once all costs and taxes are subtracted from its total income.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead treated as a period expense.