MNM Corporation Gives Each of Its Employees an Aptitude Test

question 71

Short Answer

MNM Corporation gives each of its employees an aptitude test. The scores on the test are normally distributed with a mean of 75 and a standard deviation of 15. A simple random sample of 25 is taken from a population of 500.
a. What are the expected value, the standard deviation, and the shape of the sampling distribution of ?
b. What is the probability that the average aptitude test in the sample will be between 70.14 and 82.14?
c. What is the probability that the average aptitude test in the sample will be greater than 82.68?
d. What is the probability that the average aptitude test in the sample will be less than 78.69?
e. Find a value, C, such that P ≥ C) = .015.

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Definitions:

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry, and no single buyer or seller can influence the market price.

Allocate Resources

The process of distributing available resources, such as labor, capital, and land, among various uses to fulfill societal needs and wants.

Consumer Surplus

The deviation between the monetary amount consumers are willing to pay for a good or service and the monetary amount they actually pay.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay and the actual price they do pay.