Before a New Phone System Was Installed, the Amount a Company

question 130

Multiple Choice

Before a new phone system was installed, the amount a company spent on personal calls followed a normal distribution with an average of $700 per month and a standard deviation of $50 per
Month. Refer to such expenses as PCEʹs (personal call expenses) . Find the probability that a
Randomly selected month had PCEʹs below $550.

• A)0.7857
• B)0.2143
• C)0.9987
• D)0.0013

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Definitions:

10% More

Indicates an increase or addition of ten percent to a given number or value.

7% Less

A reduction by seven percent from a previous amount or value.

Standard & Poor's 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

Stock Index

A statistical measure that shows changes in the stock market by tracking selected stocks' prices.