Exhibit 5-12

question 108

Multiple Choice

Exhibit 5-12.According to a Department of Labor report,the city of Detroit had a 20% unemployment rate in May of 2011 (Bureau of Labor Statistics,May,2011) .Eight working-age residents were chosen at random. Refer to Exhibit 5-12.What is the probability that exactly four residents were unemployed?

• A)0.0013
• B)0.0091
• C)0.0459
• D)0.1468

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Definitions:

Raw Material Purchases

The acquisition of the basic inputs or resources that are converted through manufacturing processes into final products.

Factory Overhead

Costs related to the operation of a manufacturing plant which cannot be directly associated with specific units of production, such as utilities, maintenance, and management salaries.

Property Taxes

Property Taxes are levies imposed by local governments on real estate based on the property's value, used to fund public services and infrastructure.

Insurance

A financial product that offers protection against potential future losses or damages in exchange for a premium.