Find and Interpret the Area Under a Normal Curve

question 77

Multiple Choice

Find and Interpret the Area under a Normal Curve
-A new phone system was installed last year to help reduce the expense of personal calls that were being made by employees. Before the new system was installed, the amount being spent on personal calls follows a normal distribution with an average of $700 per month and a standard deviation of $50 per month. Refer to such expenses as PCE s (personal call expenses) . Find the probability that a randomly selected month had a PCE that falls below $550.

• A) 0.0013
• B) 0.7857
• C) 0.2143
• D) 0.9987

Apply correct punctuation rules in sentence construction.

Recognize and correct verb tense and agreement errors.

Distinguish between homophones and correctly use them in sentences.

Identify and correct errors in direct and indirect quotations.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.

Table: Price Elasticity

A tabulated representation of how the quantity demanded of a good responds to changes in its price, expressed as a ratio of percentage changes.

Midpoint Formula

A method used to find the midpoint between two points on a line segment, which is the average of the x-coordinates and y-coordinates of the points.

Price Elasticity

A metric determining the responsiveness of a good's demand to its price changes.