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

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Definitions:

Monopolistically Competitive

This describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Marginal Cost

The added cost incurred from producing one more unit of a product or service, essentially the derivative of the total cost with respect to quantity.

Oligopolist

A firm or company that operates in an oligopoly, a market structure characterized by a small number of large companies dominating the industry.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.