For Which Binomial Distribution Would a Poisson Approximation Be Acceptable

question 66

Multiple Choice

For which binomial distribution would a Poisson approximation be acceptable?

• A)n = 60, π = 0.08
• B)n = 100, π = 0.15
• C)n = 40, π = 0.03
• D)n = 20, π = 0.20

Distinguish between the fixed and variable components of the predetermined overhead rate

Evaluate overhead application and its impact on product cost

Identify the effects of denominator activity level choices on overhead variances

Apply standard cost variances to management decision-making processes

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a guide used by clinicians to diagnose mental disorders.

DSM III

The third edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental disorders used by mental health professionals in the U.S.

DSM II

The second edition of the Diagnostic and Statistical Manual of Mental Disorders, a publication for the classification of mental disorders.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association that categorizes and defines mental disorders.