If the Monthly Electrical Utility Bills of All Customers for the Far

question 130

Multiple Choice

If the monthly electrical utility bills of all customers for the Far East Power and Light Company are known to be distributed as a normal distribution with mean equal to $87.00 a month and standard deviation of $36.00, which of the following would be the largest individual customer bill that you might expect to find?

• A) Approximately $811.00
• B) About $195.00
• C) Nearly $123.00
• D) There is no way to determine this without more information.

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Definitions:

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities that can be assigned to a statistical distribution while still satisfying a given number of constraints.

T-test for Dependent Means

A statistical method used to compare the means of two related groups.

α

In statistics, α (alpha) typically represents the level of significance, the probability of rejecting the null hypothesis when it is actually true.

Null Hypothesis

A hypothesis that assumes no statistical significance exists in a set of given observations and that any observed difference is due to chance.