On a Very Hot Summer Day,5% of the Production Employees

question 47

Multiple Choice

On a very hot summer day,5% of the production employees at Midland States Steel are absent from work. The production employees are randomly selected for a special in-depth study on absenteeism. What is the probability of randomly selecting 10 production employees on a hot summer day and finding that none of them are absent?

• A)0.002
• B)0.344
• C)0.599
• D)0.100

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Definitions:

Depreciation Expense

The allocated amount of the cost of an asset that is written off as an expense over its useful life.

Sales Price

The sum of money that a purchaser spends to acquire a product or service from a vendor.

Contribution Margin

The revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.

Variable Costs

Costs that change in proportion to the level of production or business activity.