Use the Table for the Question(s)below

question 72

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-Which of the following statements is FALSE?

• A)The standard error provides an indication of how far the sample average might deviate from the expected return.
• B)The 95% confidence interval for the expected return is defined as the Historical Average Return plus or minus three standard errors.
• C)We can use a security's historical average return to estimate its actual expected return.
• D)The standard error is the standard deviation of the average return.

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Definitions:

Single Plantwide Rate

An accounting method applying one overhead cost rate to all products, regardless of the department in which they were produced, simplifying the allocation of manufacturing overhead costs.

Painting Department

A specific section within a manufacturing or production facility responsible for the application of paint or coatings to products as part of the finishing process.

Single Plantwide Overhead Rate

A method for allocating all manufacturing overhead expenses to products based on a single cost driver.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.