In Its Standardized Form,the Normal Distribution

question 132

Multiple Choice

In its standardized form,the normal distribution

• A)has a mean of 0 and a standard deviation of 1.
• B)has a mean of 1 and a variance of 0.
• C)has an area equal to 0.5.
• D)cannot be used to approximate discrete probability distributions.

---

Definitions:

Negative Externality

A negative externality exists when a product or decision results in a negative effect on a third party not directly involved in the transaction.

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often associated with public goods or services.

Profit-Maximizing

The process or strategy employed by businesses to determine the price and output level that delivers the maximum possible profit.

Externality

A side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.