Use the Normal to Model the Distribution of Sample Means

question 14

Multiple Choice

Use the Normal to model the distribution of sample means.
-In a metal fabrication process, metal rods are produced that have an average length of 20.5 feet with a standard deviation of 2.3 feet. A quality control specialist collects a
Random sample of 30 rods and measures their lengths. Suppose the resulting sample mean
Is 19.5 feet. Which of the following statements is true?

• A) This sample mean is 2.38 standard deviations above what we expect.
• B) This sample mean is more than 3 standard deviations away from the population mean.
• C) This sample mean is 2.38 standard deviations below what we expect.
• D) This sample mean is only 1 standard deviation above the population mean.
• E) This sample mean is only 1 standard deviation below the population mean.

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Definitions:

Lower Price

A pricing strategy involving setting a cost below the average market price to attract customers or gain market share.

Target-Return Pricing

A pricing method whereby the price is based on the amount of investment you have put into your business.

Profit Margin

A financial metric used to assess a firm's financial health by revealing the percentage of money earned as profit.

Premium Price

Pricing goods or services higher than the market average to reflect their perceived extra value or quality.