The Shelf Life of a Battery Produced by One Major

question 68

Multiple Choice

The shelf life of a battery produced by one major company is known to be normally distributed, with a mean life of 3.5 years and a standard deviation of 0.75 years. What percent of batteries last between 1.25 and 5.75 years?

• A) 99.7%
• B) 95%
• C) 68%
• D) 50%

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Definitions:

Variable Factory Overhead

Expenses in a factory that vary with the level of production output, such as utility costs and materials.

Fixed Costs

Expenses that do not change with the level of production or sales over the short term, such as rent or salaries.

Direct Labor

This refers to the wages and other costs for labor directly involved in the production of goods or the provision of services, not including indirect labor costs such as maintenance.

Differential Profit

The difference in profit between two alternative decisions or time periods.