A New Phone System Was Installed Last Year to Help

question 90

Multiple Choice

A new phone system was installed last year to help reduce the expense of personal calls that were being madeby employees. Before the new system was installed, the amount being spent on personal calls follows a normaldistribution with an average of $900 per month and a standard deviation of $50 per month. Refer to suchexpenses as PCEʹs (personal call expenses) . Find the probability that a randomly selected month had a PCE thatfalls below $750.

• A) 0.0013
• B) 0.8333
• C) 0.1667
• D) 0.9987

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Definitions:

More Elastic Demand

A situation where the demand for a product is more sensitive to changes in price, meaning quantities demanded change significantly even with small price fluctuations.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Foundation for Success

The essential elements or conditions that must be in place to achieve positive outcomes or success.

Facing Competition

The act of engaging in business or market activities where multiple entities vie for the same customers or market share.