Determine If the Outcome Is Unusual $\mu - 2 \sigma$ Or Greater Than

question 42

Multiple Choice

Determine if the outcome is unusual. Consider as unusual any result that differs from the mean by more than 2 standard deviations. That is, unusual values are either less than $\mu - 2 \sigma$ or greater than $\mu + 2 \sigma$ .
-The Acme Candy Company claims that 60% of the jawbreakers it produces weigh more than .4 ounces. Suppose that 800 jawbreakers are selected at random from the production lines. Would it be unusual for this sample of 800 to contain 528 jawbreakers that weigh more than .4 ounces?

• A)No
• B)Yes

---

Definitions:

Inelastic Demand

A situation in which the demand for a product does not change much in response to price changes.

Close Substitutes

Products that serve similar functions or needs and can easily replace one another in the eyes of the consumer.

Complements

Products or services that are used together, such that the demand for one increases the demand for the other.

Current Margin

The present profit margin; the difference between the sales revenue and the cost of goods sold at the current time.