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

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Definitions:

Product Class

A broad category of goods or services that share similar characteristics or serve similar purposes.

Selective Demand

The demand for a specific brand or product rather than the category as a whole, often influenced by advertising and consumer preferences.

Competitors

Entities that operate in the same or similar industry and offer comparable products or services, thereby vying for the same customer base.

Skimming Pricing Strategy

A pricing approach where a product is initially set at a high price before gradually lowering it over time to capture different segments of the market.