Sure Stone Tire Company Has Established That the Useful Life

question 98

Multiple Choice

Sure Stone Tire Company has established that the useful life of a particular brand of its automobile tires is normally distributed with a mean of 40,000 miles and a standard deviation of 5000 miles.What is the probability that a randomly selected tire of this brand has a life of at least 50,000 miles?

• A)0.0228
• B)0.9772
• C)0.5000
• D)0.4772
• E)1.0000

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Definitions:

Risk-averse

Describes an individual's preference for certainty or guaranteed outcomes over uncertainty or potential losses.

Marginal Utility

The additional satisfaction a consumer gains from consuming one more unit of a good or service.

Income

The money received, especially on a regular basis, for work or through investments.

Risk-averse

Describes individuals or entities that prefer to avoid risks and would opt for a sure thing over a gamble with a potentially higher payoff.