The Amount Spent on Textbooks for the Fall Term Was

question 76

Multiple Choice

The amount spent on textbooks for the fall term was recorded for a sample of five hundred university students. The mean expenditure was calculated to be $500 and the standard deviation of the expenditures was calculated to be $100. Suppose a randomly selected student reported that their textbook expenditure was $700. Calculate the z-score for this student's textbook expenditure.

• A) +2
• B)-2
• C)+3
• D)-3

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, changing with the level of activity but not directly proportional.

Variable Costs

are expenses that change in proportion to the activity of a business, such as the cost of raw materials used in production.

Differential Costs

The difference in total cost that will result from selecting one alternative over another.

Fixed Costs

Fixed costs include payments like rent, salaries, and insurance that are unaffected by variations in production or sales volumes.