Instruction 6-7 A Company Has 125 Personal Computers.The Probability That Any One

question 174

Multiple Choice

Instruction 6-7
A company has 125 personal computers.The probability that any one of them will require repair on a given day is 0.15.
-Referring to Instruction 6-7,which of the following is one of the properties required so that the binomial distribution can be used to compute the probability that no more than 2 computers will require repair on a given day?

• A)The probability that two or more computers that will require repair in a given day approaches zero.
• B)The probability that a computer that will require repair in the morning is the same as that in the afternoon.
• C)The number of computers that will require repair in the morning is independent of the number of computers that will require repair in the afternoon.
• D)The probability that any one of the computers that will require repair on a given day will not affect or change the probability that any other computers that will require repair on the same day.

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Definitions:

Activity-based Costing

A costing method that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Overhead Costs

Expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administration expenses.

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities they require.