The Amount of Soda a Dispensing Machine Pours into a 12-Ounce

question 72

Multiple Choice

The amount of soda a dispensing machine pours into a 12-ounce can of soda follows a normal distribution with a mean of 12.30 ounces and a standard deviation of 0.20 ounce. Each can holds a maximum of 12.50 ounces of soda. Every can that has more than 12.50 ounces of soda poured into it
Causes a spill and the can must go through a special cleaning process before it can be sold. What is the probability that a randomly selected can will need to go through this process?

• A) .8413
• B) .6587
• C) .1587
• D) .3413

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Definitions:

Demand Function

A mathematical representation that describes the relationship between the quantity demanded of a good and its price, alongside possible other variables like income or prices of related goods.

Quasilinear Utility

A utility function where one good (usually money) enters linearly and therefore preferences for other goods are independent of the amount of money.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the good's sensitivity to price changes.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in the consumer's income.