A Company Is Studying the Number of Monthly Absences Among

question 102

Multiple Choice

A company is studying the number of monthly absences among its 125 employees. The following probability distribution shows the likelihood that people were absent 0, 1, 2, 3, 4, or 5 days last month. What is the mean number of days absent?

• A) 1.00
• B) 0.40
• C) 0.72
• D) 2.5

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Definitions:

Standard Costs

The predetermined, estimated costs of manufacturing a single unit or a number of products during a specific period for budgetary and inventory valuation purposes.

Unit Costs

The cost incurred to produce, store, or purchase one unit of a product or service.

Standard Costing Systems

Accounting methods that use standard costs for direct materials, labor, and overhead to assess the efficiency of operations.

Cost Minimisation

A business strategy aimed at reducing expenses to improve profitability without compromising on the quality of the products or services offered.