A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week. Interpret this value.
Question 7 options:

a) The expected or average cost for all weekly rat purchases is $13.00.
b) The rat cost that occurs more often than any other is $13.00.
c) The median cost for the distribution of rat costs is $13.00.
d) Most of the weeks resulted in rat costs of $13.00.

The correct option is that the expected or the average cost of all the weekly rat purchases is $13.

Explanation:

Option a is true as there is no definite information about the future pricing is indicated. However from the historic data, it can be stated that the expected or average cost for all weekly rat purchases is $13.

Option b is not true as the statement given is a definition of mode of the purchase. There is no such information in the question.

Option c is not true as there is no information in the question indicating that the purchases are evenly distributed below and above the value of $13.

Option d is not true as there is no indication of this occurrence in the question in the definitive way.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o