Explain the Role of Area in the Normal Density Function $\mu = 610$

question 63

Short Answer

Explain the Role of Area in the Normal Density Function
-The analytic scores on a standardized aptitude test are known to be normally distributed with mean $\mu = 610$ and standard deviation $\sigma = 115$ .
(a) Draw a normal curve with the parameters labeled.
(b) Shade the region that represents the proportion of test takers who scored less than 725 .
(c) Suppose the area under the normal curve to the left of $X = 725$ is $0.8413$ . Provide two interpretations of this result.

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Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same amount of resources.

Resources

Assets, materials, and inputs used to produce goods and services, including time, labor, capital, and natural resources.

Production

The process of creating, growing, manufacturing, or improving goods and services.

Production Possibility Curve

A graphical representation showing the maximum combination of goods and services that can be produced with a given set of resources and technology.