Automobiles Traveling on a Road with a Posted Speed Limit

question 104

Multiple Choice

Automobiles traveling on a road with a posted speed limit of 65 miles per hour are checked for speed by a state police radar system.The following table is a frequency distribution of speeds. What proportion of the cars traveled at least 55 but less than 65 miles per hour?

• A) 0.33
• B) 0.48
• C) 0.56
• D) 0.80

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Definitions:

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.

Idle Capacity

Unused production capacity in a business, where the facilities, equipment, or workforce are not being fully utilized.