In 2007, the Mean Price Per Pound of Lobster in New

question 20

Multiple Choice

In 2007, the mean price per pound of lobster in New England was $11.48 and the standard deviation was $2.12. A histogram of the data shows that the distribution is symmetrical. A local New England grocer is selling lobster for $8.99 per pound. What is this price in standard units? Assuming the Empirical Rule applies, would this price be considered unusual or not? Round to the nearest hundredth.

• A)z = 1.17; This is unusually expensive lobster.
• B)z = 1.17; This price would not be unusual.
• C)z = - 1.17; This is unusually inexpensive lobster.
• D)z = - 1.17; This price would not be unusual.

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Definitions:

Monetarists

Economists who believe that variations in the money supply are the main source of economic fluctuations.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales.

Monetarists

Economists who posit that variability in the money supply critically impacts the short-term national economic output and the price level over longer spans.

Money Supply

This refers to the total amount of money (including cash, coins, and balances in bank accounts) in circulation within an economy at a given time.