Find the Value of a Normal Random Variable

question 67

Multiple Choice

Find the Value of a Normal Random Variable
-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 $600 per month and a standard deviation of $50 per month. Refer to such expenses as PCE s (personal call expenses) . Find the point in the distribution below which 2.5% of the PCE s fell.

• A) $502.00
• B) $698.00
• C) $15.00
• D) $585.00

Identify the principles of moral hazard and adverse selection in insurance markets.

Understand diversification and how it reduces risk in investment portfolios.

Learn the effects of interest rates on the present value of future payments.

Understand the role of the efficient markets hypothesis in valuing assets.

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Definitions:

Bacteria

Microscopic single-celled organisms that inhabit virtually all environments, including soil, water, organic matter, and the bodies of multi-cellular animals.

Urine Specimen

A sample of urine collected for medical testing to diagnose or monitor health conditions.

Kidneys

A pair of organs in the vertebrates' body that filter waste products from the blood and excrete them, along with water, as urine.

Electrolyte Balance

The maintenance of proper concentrations of minerals in the body, which is vital for numerous physiological functions.