A Large Number of Applicants for Admission to Graduate Study

question 65

Multiple Choice

A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally distributed with a mean of 460 and standard deviation of 80. What fraction of the applicants would you expect to have a score of 400 or above?

• A)0.2734
• B)0.7734
• C)0.7266
• D)0.7500

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs.

MH

Often used as an abbreviation for "machine hours," representing the amount of time machines are operated in the production process.

Variable Overhead Rate Variance

The difference between actual variable overhead incurred and the standard cost allocated based on activity level.

Variable Overhead Rate Variance

The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.