The Distribution of Gas Consumption for SUVs (In Miles Per

question 27

Multiple Choice

The distribution of gas consumption for SUVs (in miles per gallon) is approximately normally distributed with a center of 24.8 mpg and a standard deviation of 5 mpg. A similar data set for a group of sedans is approximately normally distributed with a center of 28 mpg and a standard deviation of 4 mpg. Which one of the following statements is true when the distributions are compared on a number line?

• A)The normal distribution for the sedans is shifted to the right and not as spread out.
• B)The normal distribution for the SUVs is centered at the same value as for the sedans but spreads out further.
• C)The normal distribution for the sedans is shifted to the right and more spread out.
• D)The normal distribution of the SUVs is centered at the same value as for the sedans but does not spread out as far.

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Definitions:

Non-price Competition

A strategy by businesses to attract customers through methods other than lowering prices, such as quality improvement, marketing, or product differentiation.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry.

Market Share

The portion of a market controlled by a particular company or product.

Oligopolistic Models

Economic models that describe markets in which a few firms dominate, often leading to pricing and output decisions that consider the actions of competitors.