Given That Z Is a Standard Normal Random Variable, What

question 65

Multiple Choice

Given that z is a standard normal random variable, what is the value of z if the area between -z and z is 0.9812?

• A) 2.35
• B) 2.07
• C) 0.25
• D) 1.96

---

Definitions:

Long-run Equilibrium

A state in economics where all factors of production are fully adjustable, and markets or industries have adjusted to their optimal production levels and prices.

Competitive Price-searcher Market

A market in which firms have some degree of market power and can determine their prices, often through differentiation and searching for competitive advantages.

Average Total Cost

The total cost of production divided by the number of units produced, reflecting the cost per unit.

Competitive Price-searcher Firm

A company that sets its own prices based on its products, costs, and the competitive environment, rather than taking the market price as given.