The Following Frequency Distribution Shows the Monthly Stock Returns for Home

question 68

Multiple Choice

The following frequency distribution shows the monthly stock returns for Home Depot for the years 2003 through 2007. Over the time period,the following summary statistics are provided: Mean = 0.31%,Standard deviation = 6.49%,Skewness = 0.15,and Kurtosis = 0.38.The expected frequency for the class 0 ≤ Return < 5 if the return is normally distributed is _______.

• A) 12.37
• B) 16.44
• C) 17.05
• D) 14.15

---

Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that change with production volume, such as utilities or indirect materials, not fixed over the short term.

Machine-Hours

A measure used in manufacturing to allocate costs to products or job orders based on the number of hours a machine is used.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead costs to products, calculated before the production period begins.

Variable Manufacturing Overhead

The portion of variable overhead costs that are directly associated with the manufacturing process, including costs like indirect materials and utilities.