Before a New Phone System Was Installed, the Amount a Company

question 111

Multiple Choice

Before a new phone system was installed, the amount a company spent on personal calls followed a normal distribution with an average of $900 per month and a standard deviation of $50 per month. Refer to such expenses as PCE's (personal call expenses) . Using the distribution above, what is the probability that during a randomly selected month PCE's were between $775.00 and $990.00?

• A) .0001
• B) .9999
• C) .9579
• D) .0421

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Definitions:

Rate of Interest

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Households

Units in an economy consisting of one or more people who live in the same dwelling and share meals or living accommodation, and may consist of a single family or some other grouping of people.

Aggregate Demand

Cumulative need for every type of good and service in an economy, observed at a consistent overall price point across a chosen period.

Money Supply

The total economic monetary resources present at a specific time.