A Major Cell Phone Service Provider Has Determined That the Number

question 48

Multiple Choice

A major cell phone service provider has determined that the number of minutes that its customers use their phone per month is normally distributed with a mean equal to 445.5 minutes with a standard deviation equal to 177.8 minutes. The company is thinking of charging a lower rate for customers who use the phone less than a specified amount. If it wishes to give the rate reduction to no more than 12 percent of its customers, what should the cut-off be?

• A) About 237 minutes
• B) About 654 minutes
• C) About 390 minutes
• D) About 325 minutes

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Definitions:

Categorical

Refers to a type of data that can be divided into groups or categories that are mutually exclusive.

Variable

An element, feature, or factor that is liable to vary or change, the values of which can differ in a dataset or experiment.

Key Characteristic

An attribute or feature that is deemed essential or significantly important.

Variables

Elements or quantities that can vary or change in a study or experiment.