Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 123

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-A multiple choice test consists of 60 questions. Each question has 4 possible answers of which one is correct. If all answers are random guesses, estimate the probability of getting at least 20% correct.

• A)0.0901
• B)0.8508
• C)0.1492
• D)0.3508

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Definitions:

Perfectly Elastic

describes a demand or supply scenario where quantity demanded or supplied changes infinitely in response to any change in price.

Efficient Level of Output

The quantity of production that maximizes the difference between total revenue and total cost, or equivalently, minimizes average total cost.

Perfect Competitor

An idealized market structure in which many firms sell identical products, entry and exit are easy, and all buyers and sellers are well-informed, leading to perfect competition.

Inelastic Demand Curve

A situation where the demand for a good or service does not significantly change with a change in its price.