Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 96

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-Two percent of hair dryers produced in a certain plant are defective. Estimate the probability that of 10,000 randomly selected hair dryers, at least 219 are defective.

• A) 0.0869
• B) 0.0934
• C) 0.0823
• D) 0.9066

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Definitions:

Average Revenue

The amount of income generated per unit of sale or service offered, calculated by dividing total revenue by the number of units sold.

Profit Maximizes

The process by which a firm determines the price and output level that leads to the highest profit.

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the quantity of output produced.

Fixed Cost

Costs that do not change with the level of production or output, such as rent or salaries.