Question

1. Assume the mean useful life of a particular light bulb is 2,000 hours and is normally distributed with a standard deviation of 300 hours. Calculate the useful life of light bulbs within two standard deviations of the mean.
2. Lee's toy store is worth $400,000 and is insured for $300,000. Assuming an 80 percent coinsurance clause and that a fire caused $190,000 damage, what is the liability of the insurance company?
3. Joy Co. allocates overhead expenses to all departments on the basis of floor space (sq. ft.) occupied by each department. This year total overhead expenses were $22,000. Dept. A occupied 15,000 sq. ft., Dept. B 18,000 sq. ft. and Dept. C 9,000 sq. ft. Calculate the amount of overhead allocated to Dept. B, rounding to the nearest dollar.
4. In analyzing the income statement of Bob Company, cost of goods sold has decreased from 2016 to 2017 by 8.2 percent. The cost of goods sold was $19,000 in 2017. What was the cost of goods sold to nearest dollar in 2016?

Answer 1