The Analytic Scores on a Standardized Aptitude Test Are Known

question 112

Essay

The analytic scores on a standardized aptitude test are known to be normally distributed with mean μ= 610and standard deviation σ = 115.(a) Draw a normal curve with the parameters labeled.(b) Shade the region that represents the proportion of test takers who scored less than 725.(c) Suppose the area under the normal curve to the left of X = 725 is 0.8413. Provide two interpretations of thisresult.

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Definitions:

Economic Incentive

A benefit or penalty that motivates economic behavior or decisions among individuals or organizations.

Price-Taker Market

A market condition where individual buyers or sellers have no power to influence the price of goods and services, typically due to high competition and standardized products.

Economic Profits

The difference between a firm's total revenues and its total opportunity costs.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or limit the possibility of new competitors entering an industry.