The Manager at a Local Movie Theater Has Collected Data

question 59

Multiple Choice

The manager at a local movie theater has collected data for a long period of time and has concluded that the revenue from concession sales during the first show each evening is normally distributed with a mean equal to $336.25 and a variance equal to 1,456. Based on this information, what are the chances that the revenue on the first show will exceed $800?

• A) 0.1255
• B) Essentially zero
• C) 0.3745
• D) 0.9999

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Cost Principle

An accounting principle that requires assets, liabilities, equity, and expenses to be recorded at their original cost.

Market Value

The market's current rate for transactions involving the purchase or sale of an asset or service.

Appraisal

The process of professionally estimating the value of a property, often used for taxation or sale purposes.