On a Given Day, the Price of a Gallon of Milk

question 132

Multiple Choice

On a given day, the price of a gallon of milk had a mean price of $2.03 with a standard deviation of $0.07. A particular food store sold milk for $1.96/gallon. Interpret the z-score for this gas station.

• A)The milk price of this food store falls 1 standard deviation below the milk gas price of all food stores.
• B)The milk price of this food store falls 7 standard deviations below the mean milk price of all food stores.
• C)The milk price of this food store falls 7 standard deviations above the mean milk price of all food stores.
• D)The milk price of this food store falls 1 standard deviation above the mean milk price of all food stores.

---

Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.

Profit Maximize

The process by which a company determines the price and output level that returns the greatest profit, taking into account costs and demand.

Wage Rate

Wage Rate represents the standard amount of compensation a worker receives for performing a specific task or job, typically expressed per hour or per unit of work completed.

Marginal Expenditure

The additional cost incurred for producing one more unit of a good or service.