The Manager at a Local Movie Theater Has Collected Data

question 59

Multiple Choice

The manager at a local movie theater has collected data for a long period of time and has concluded that the revenue from concession sales during the first show each evening is normally distributed with a mean equal to $336.25 and a variance equal to 1,456. Based on this information, what are the chances that the revenue on the first show will exceed $800?

• A) 0.1255
• B) Essentially zero
• C) 0.3745
• D) 0.9999

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Definitions:

Customizing Department

A specialized unit within a company that modifies products to meet specific customer requirements or preferences.

Departmental Predetermined Overhead Rates

Overhead rates calculated for each department based on estimated costs and activity levels, used to allocate overhead costs to products.

Machine-Hours

Machine-Hours are a measure of the actual running time that a machine or group of machines operates during a given period.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, rent, and salaries for support staff.