Find the Value of a Normal Random Variable

question 25

Multiple Choice

Find the Value of a Normal Random Variable
-A brewery has a beer dispensing machine that dispenses beer into the company s 12 ounce bottles. The distribution for the amount of beer dispensed by the machine follows a normal distribution with a standard deviation of 0.15 ounce. The company can control the mean amount of beer dispensed by the machine. What value of the mean should the company use if it wants to guarantee that 98.5% of the bottles contain at least 12 ounces (the amount on the label)

• A) 12.325 oz
• B) 12.364 oz
• C) 12.002 oz
• D) 12.001 oz

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Definitions:

Residual Value

The estimated remaining value of an asset at the end of its useful life.

Salvage Value

The anticipated end-of-life value of an asset once it has finished its useful period.

Plant Asset

Long-term tangible assets that are used in the operations of a business and are not intended for sale.

Book Value

The value of an asset as recorded on a company's balance sheet, calculated as the cost of an asset minus accumulated depreciation.