A New Phone System Was Installed Last Year to Help

question 82

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 $800 per month and a standard deviation of $50 per month. Refer to suchexpenses as PCEʹs (personal call expenses) . Find the point in the distribution below which 2.5% of the PCEʹsfell.

• A) $702.00
• B) $898.00
• C) $20.00
• D) $780.00

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Definitions:

Population Variance

A measure of the spread or dispersion of a set of data values in a population, indicating the average squared deviation from the mean.

Rejection Region

The rejection region is the range of values in hypothesis testing for which the null hypothesis is rejected in favor of the alternative hypothesis.

Population Mean

The average value of a characteristic or measurement across the entire population targeted in a study.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, quantifying how much the data diverges from the mean of the population.