Historical Data for a Local Steel Manufacturing Company Show That

question 10

Multiple Choice

Historical data for a local steel manufacturing company show that the average number of defects per standard sheet of steel is 2.In addition,the number of defects per unit is distributed according to a Poisson distribution.Determine the standard deviation of the number of defects for 32 sheets of metal.

• A)2
• B)32
• C)64
• D)8

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that goes to taxes.

Depreciable Equipment

Tangible assets used in operations that lose value over time due to wear and tear, which can be written off as an expense for tax purposes over its useful life.

Net Income

The ultimate profit a company makes, determined by taking away all expenses, taxes, and costs from the total income generated.

Cash Outflow

The total amount of money being transferred out of a business, including expenses, investments, and other payments.