The Normal Approximation of the Binomial Distribution Is Appropriate When

question 73

Multiple Choice

The normal approximation of the binomial distribution is appropriate when

• A) np ≥ 5.
• B) n(1 − p) ≥ 5.
• C) np ≤ 5.
• D) n(1 − p) ≤ 5 and np ≤ 5.
• E) np ≥ 5 and n(1 − p) ≥ 5.

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Definitions:

Production Cost Pool

is a collection of direct and indirect manufacturing costs that are assigned to products based on specific allocation criteria.

Activity Rate

A measure used in activity-based costing to allocate overhead costs to products or services, based on specific activities or cost drivers.

Machine Hour

A measure of production time, used as a basis for allocating manufacturing overhead costs to products based on machine usage.

Factory Overhead Rates

A calculation used in manufacturing to allocate indirect costs, like utilities and salaries, to products.