Normally Distributed Observations Such as a Person's Weight, Height or Shoe

question 123

Multiple Choice

Normally distributed observations such as a person's weight, height or shoe size occur quite frequently in nature. Business people who are aware of this use it to their advantage. A purchasing agent for a college bookstore buying 300 golf shirts used the normal curve to decide on the order quantities for the various sizes. If men's average shirt size is 15.5 with a standard deviation of.50, how many shirts should be ordered in sizes over 16.5?

• A) 7
• B) 8
• C) 9
• D) 10
• E) 6

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Definitions:

Activity Declines

A reduction in the level of operations, production, or business activities.

Activity Variance

measures the difference between the actual costs incurred and the budgeted costs based on the actual level of activity.

Actual Revenue

The real income that a company receives from its business activities, measured over a specific period.

Static Planning Budget

A budget for a specific amount of sales or production that does not change as volume changes.