Transportation Officials Tell Us That 80% of Drivers Wear Seat

question 203

Multiple Choice

Transportation officials tell us that 80% of drivers wear seat belts while driving. What is the probability of observing 518 or fewer drivers wearing seat belts in a sample of 700 drivers?

• A) 0.8
• B) approximately 0
• C) 0.2
• D) approximately 1

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Definitions:

ATC

The abbreviation for Average Total Cost, which is the total cost divided by the number of goods produced.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of output or production volume, such as materials and labor expenses.

Average Variable Cost

The total variable costs incurred by a firm divided by the quantity of output produced.