The Preventable Monthly Loss at a Company Has a Normal

question 41

Multiple Choice

The preventable monthly loss at a company has a normal distribution with a mean of $5700 and a standard deviation of $30. A new policy was put into place, and the preventable loss the next
Month was $5520. What inference can you make about the new policy?

• A)The new policy is probably less effective than the one it replaced.
• B)Because the probability that the monthly loss would be as low as $5520 is not very small, the new policy is not working.
• C)Because the probability that the monthly loss would be as low as $5520 is small, the new policy is working.
• D)While the probability that the monthly loss would be as low as $5520 is small, it is not unexpected.