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

question 152

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 8% of the jawbreakers it produces actually result in a broken jaw. Suppose 9571 persons are selected at random from those who have eaten a jawbreaker produced at Acme Candy Company. Would it be unusual for this sample of 9571 to contain 792 persons with broken jaws?

• A)No
• B)Yes

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Definitions:

Money Supply

The aggregate financial resources within an economy, including cash, coins, and the funds in checking and savings accounts, at a designated time.

Paper Money

Currency in the form of paper notes issued by the government or central bank as legal tender for transactions.

Federal Reserve System

The United States' primary bank system, tasked with monetary policy management.

National Banks

Financial institutions chartered by the federal government, subject to national banking laws and regulations.