From a Portion of a Probability Distribution, You Read That

question 67

Multiple Choice

From a portion of a probability distribution, you read that P(demand = 1) is 0.05, P(demand = 2) is 0.15, and P(demand = 3) is .20. The cumulative probability for demand 3 would be

• A) 0.133
• B) 0.200
• C) 0.400
• D) 0.600
• E) cannot be determined from the information given

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Definitions:

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A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to a cost variance.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including but not limited to utilities, rent, and maintenance of equipment.

Expired Insurance

An insurance policy that has reached its end date and is no longer in effect.