Suppose the Dealer Incentive Per Vehicle for Honda's Acura Brand

question 89

Multiple Choice

Suppose the dealer incentive per vehicle for Honda's Acura brand in 2012 is thought to be bell-shaped and symmetrical with a mean of $2,500 and a standard deviation of $300.Based on this information,what interval of dealer incentives would we expect approximately 99.7% of vehicles to fall within?

• A) $2,200 to $2,800
• B) $1,900 to $3,100
• C) $1,600 to $3,400
• D) $1,300 to $3,700

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Definitions:

Materials Quantity Standard

The established amount of materials that should be used for the production of a unit of goods.

Labor Quantity Standard

The benchmark or established norm for the amount of labor input required to produce a certain amount of output, reflecting efficiency expectations.

Materials Price Standard

The predetermined cost of materials that should be incurred under efficient operating conditions.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or services based on a chosen activity base.