A Certain Car Model Has a Mean Gas Mileage of 28

question 10

Multiple Choice

A certain car model has a mean gas mileage of 28 miles per gallon (mpg) with a standard deviation 5 mpg. A pizza delivery company buys 37 of these cars. What is the probability
That the average mileage of the fleet is between 27.2 and 28.8 mpg?

• A) 0.1660
• B) 0.8340
• C) 0.6680
• D) 0.3320

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Definitions:

Fixed Assets

Fixed assets are long-term tangible assets intended for use in the production or supply of goods or services, not easily converted to cash within a year.

Residual Value

The estimated salvage value of an asset after its useful life is over.

Fully Depreciated

Describes an asset that has reached the end of its useful life, with its cost fully expensed against income over its defined accounting period.

Equipment

Tools, machinery, and other durable assets used by a business in its operations to produce goods or services.