A Random Variable, X, Has a Normal Distribution with μ

question 75

Multiple Choice

A random variable, x, has a normal distribution with μ = 13.6 and σ = 2.90. Determine a value, x0, so that P(x > x0) = 0.05.

• A) 14.46
• B) 15.33
• C) 18.37
• D) 12.45

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Definitions:

Variable Cost

Costs that vary directly with the level of production or with the volume of output.

Fixed Cost

Expenses that do not change with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Contribution Margin Technique

A method used to evaluate how sales affect net income or profits, calculated as sales revenue minus variable costs.

Net Income (Loss)

The total profit or loss a company generates in a specific period after all expenses, taxes, and costs have been deducted from total revenue.