Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 139

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-A certain question on a test is answered correctly by 22% of the respondents. Estimate the probability that among the next 150 responses there will be at most 40 correct answers.

• A)0.1003
• B)0.0694
• C)0.9306
• D)0.8997

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Definitions:

Cournot Duopolists

A model of competition between two firms that decide on quantity to produce independently and simultaneously with the assumption of no further entry into the market.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, usually downward sloping.

Total Costs

The sum of all the costs incurred in the production of goods or services, including both fixed and variable costs.

Daily Profit

The financial gain calculated as the difference between revenue and expenses for a single day.