A Company Sells Light Bulbs in Packages of 20 and Estimates

question 176

Multiple Choice

A company sells light bulbs in packages of 20 and estimates that the mean number of defective light bulbs in a package is 0.6 with a standard deviation of 0.7.If a customer buys 12 packages,what are the expected value and standard deviation of the number of defective light bulbs? Assume that packages are independent of each other.

• A)μ = 7.2,σ = 2.42
• B)μ = 7.2,σ = 100.8
• C)μ = 2.08,σ = 8.4
• D)μ = 7.2,σ = 8.4
• E)μ = 2.08,σ = 2.42

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Definitions:

Direct Labor-Hours

The amount of labor time consumed by workers who are directly engaged in the manufacturing of products, serving as a critical factor in costing and production planning.

Forming Department

A specific section within a manufacturing facility where raw materials are shaped or formed into parts for further assembly or production processes.

Assembly Department

A division within a manufacturing plant where components are assembled into final products, often involving various processes and equipment.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the costs are incurred based on estimated costs and activity levels.