SCENARIO 7-3 The Lifetimes of a Certain Brand of Light Bulbs Are

question 56

Short Answer

SCENARIO 7-3
The lifetimes of a certain brand of light bulbs are known to be normally distributed with a mean of 1,600 hours and a standard deviation of 400 hours.A random sample of 64 of these light bulbs is taken.
-Referring to Scenario 7-3,what is the probability that the sample mean lifetime is more than 1,550 hours?

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Definitions:

Legal Reserves

Reserves that depository institutions are allowed by law to claim as reserves; vault cash and deposits held at Federal Reserve district banks.

Excess Reserves

Excess Reserves are the reserves that banks hold over and above the legal or required minimum they need to keep against deposits.

Open Market Purchase

A monetary policy operation where a central bank buys government securities from the market in order to inject liquidity and encourage lending and investment.

Required Reserve Ratios

Regulatory requirements determining the minimum fraction of customer deposits that commercial banks must hold as reserves, rather than loan out.