Exhibit 6-9 The Average Price of Personal Computers Manufactured by MNM Company

question 47

Multiple Choice

Exhibit 6-9
The average price of personal computers manufactured by MNM Company is $1,200 with a standard deviation of $220. Furthermore, it is known that the computer prices manufactured by MNM are normally distributed.
-Refer to Exhibit 6-9. What is the probability that a randomly selected computer will have a price of at least $1,530?

• A)0.0668
• B)0.5668
• C)0.4332
• D)1.4332

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Income Tax Expense

The total amount of income tax a company is required to pay to tax authorities, as calculated based on taxable income.

Deferred Tax Liability

A tax obligation that a company owes but is not due to be paid until a future period, often resulting from timing differences in recognizing income and expenses for tax and accounting purposes.

Deferred Tax Asset

A deferred tax asset is an accounting term used to describe a situation where a business has paid more taxes or anticipates paying more taxes than it is currently liable for.