Costco Installs Automobile Tires on a First-Come First-Serve Basis

question 79

Multiple Choice

Costco installs automobile tires on a first-come first-serve basis. The total time a customer needs to wait for the installation to be completed follows the normal distribution with a mean time of 106.3 minutes and a standard deviation of 18.5 minutes. What is the probability that a randomly selected customer will wait more than 125 minutes for his or her tires to be installed?

• A)0.2090
• B)0.1562
• C)0.3409
• D)0.4920

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.

Producer Surplus

The discrepancy between the price sellers are ready to accept for an item and the price they actually receive.

Equilibrium Price

The cost point where the amount of a product or service consumers want to buy matches the amount available, resulting in a balanced market.

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market equilibrium price.