Exhibit 5-13

question 88

Multiple Choice

Exhibit 5-13.Chauncey Billups,a current shooting guard for the Los Angeles Clippers,has a career free-throw percentage of 89.4%.Suppose he shoots six free throws in tonight's game. Refer to Exhibit 5-13.What is the standard deviation of the number of free throws that Billups will make?

• A)0.5364
• B)0.5686
• C)0.7540
• D)5.6860

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Definitions:

Products

These are items or services created through a process of production and are offered in the marketplace to satisfy consumer demand.

Break-Even Level

The point at which total revenues equal total expenses, and the business neither makes a profit nor incurs a loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

A cost that changes in proportion to the level of production or business activity.