At Company a Employees Commute an Average of 25 Miles

question 33

Multiple Choice

At Company A employees commute an average of 25 miles and the standard deviation is 10 miles. At Company B employees commute an average of 50 miles and the standard deviation is 5 miles. At which company is there more dispersion in commuting distances?

• A) Company A
• B) Company B
• C) Company A and Company B are exactly equal
• D) there is insufficient information

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Definitions:

Variable Costs

Expenses that change in proportion to the activity or production level of a business.

Output

The total amount of goods or services produced by a company or economy in a given period.

Production Function

A technological relationship expressing the maximum quantity of a good attainable from different combinations of factor inputs.

Inputs

Resources used in the production process, including labor, capital, materials, and energy.