Suppose That a Normal Model Describes Fuel Economy (Miles Per $( \mathrm { z } - \mathrm { score } ) \text { of } + 2.2$

question 113

Multiple Choice

Suppose that a Normal model describes fuel economy (miles per gallon) for automobiles and that a Saturn has a standardized score (z $( \mathrm { z } - \mathrm { score } ) \text { of } + 2.2$ This means that Saturns . . .

• A) get 2.2 mpg more than the average car.
• B) achieve fuel economy that is 2.2 standard deviations better than the average car.
• C) get 2.2 times the gas mileage of the average car.
• D) get 2.2 miles per gallon.
• E) have a standard deviation of 2.2 mpg.

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Definitions:

Volume

The number of units of a product or service sold or produced.

CM Ratio

The CM Ratio, or Contribution Margin Ratio, is a financial metric that shows the proportion of sales revenue that exceeds variable costs, indicating the amount available to cover fixed costs and generate profit.

Fixed Expenses

Costs that remain constant for a set period and do not vary with changes in activity level, production volume, or sales, such as lease payments and utility bills. This is a rephrased definition of Fixed Costs.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.