Assume the Mean Useful Life of a Particular Lightbulb Is

question 18

Multiple Choice

Assume the mean useful life of a particular lightbulb is 2,000 hours and is normally distributed with a standard deviation of 300 hours. Calculate the useful life of lightbulbs within two standard deviations of the mean.

• A)Between 1,700 and 2,300 hours
• B)Longer than 2,300 hours
• C)Longer than 1,700 hours
• D)Between 1,400 and 2,600 hours

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Definitions:

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.

Diminishing Marginal Utility

The decrease in satisfaction or usefulness obtained from each additional unit of consumption.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, due to the availability of more desirable substitutes.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction gained from consuming an additional unit decreases.