When a Household Is Randomly Selected, the Probability Distribution for the Number

question 85

Multiple Choice

When a household is randomly selected, the probability distribution for the number x of cars owned is as described in the accompanying table. Find the mean and standard deviation of the probability distribution.

• A) 0.0000, 0.0000
• B) 1.75, 0.859
• C) 1.75, 0.895
• D) 1.97, 0.853
• E) 1.799, 0.783

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Definitions:

Variable Costing

An accounting method that charges only variable production costs to units produced and treats fixed manufacturing overhead as a period expense.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.