If There Is a 90 Percent Chance That an Observed

question 19

Essay

If there is a 90 percent chance that an observed variance is random, the cost of conducting an investigation is $1,000, the cost to correct a variance if the investigation reveals a nonrandom cause, and the amount of loss a company expects to incur if it does not investigate a variance that had a nonrandom cause is $30,000, what is the expected cost (to the nearest whole dollar) of not investigating the variance?
A) $30,000.
B) $1,500.
C) $0.
D) $3,900.
E) $3,000.

• A) $30,000.
• B) $1,500.
• C) $0.
• D) $3,900.
• E) $3,000.

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Definitions:

19th Amendment

An amendment to the United States Constitution that granted American women the right to vote, ratified in 1920.

Women's Vote

The right of women to vote in elections, a historic achievement in the struggle for gender equality that was realized in various stages globally throughout the 19th and 20th centuries.

Constitution

The fundamental principles and established precedents according to which a state or other organization is governed.

Economic Climate

The general condition of the economic environment that influences business activities and financial performance.