Solve the Problem

question 52

Multiple Choice

Solve the problem. Round the standard score to the nearest tenth before using the z-score tables. Express your answer as
a decimal rounded to four decimal places.
-The annual precipitation amounts in a certain mountain range are normally distributed with a mean of 84 inches, and a standard deviation of 10 inches. What is the likelihood that the mean annual precipitation during
25 randomly picked years will be less than 86.8 inches?

• A)0.9192
• B)0.5808
• C)0.0808
• D)0.4192

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Definitions:

Weak Axiom

In the context of consumer theory, the Weak Axiom of Revealed Preference (WARP) suggests that if a consumer chooses a bundle of goods A over bundle B when both are affordable, then they should not choose B when A is still affordable.

Revealed Preference

A theory that determines consumer choice based on the idea that preferences can be understood by observing consumer behavior and choices.

Insurance Agent

A professional who sells, solicits, or negotiates insurance for compensation.

Salary Increase

An upward adjustment to an employee's base compensation.