The State Highway Department Is Studying Traffic Patterns on One

question 109

Multiple Choice

The state highway department is studying traffic patterns on one of the busiest highways in the state.As part of the study,the department needs to estimate the average number of vehicles that pass an intersection each day.A random sample of 64 days gives us a sample mean of 14,205 cars and a sample standard deviation of 1,010 cars.After calculating the confidence interval,the highway department officials decide that the precision is too low for their needs.They feel the precision should be 300 cars.Given this precision,and needing to be 99% confident,how many days do they need to sample?

• A)109
• B)76
• C)75
• D)62
• E)9

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Definitions:

Standard Overhead

The fixed amount of overhead costs that are expected to be incurred under normal operating conditions.

Volume Variance

The difference between the budgeted volume of production or sales and the actual volume, impacting costs or revenue.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more useful tool for performance evaluation compared to a static budget.