Determine If the Outcome Is Unusual $\mu - 2 \sigma$ Or Greater Than

question 99

Multiple Choice

Determine if the outcome is unusual. Consider as unusual any result that differs from the mean by more than 2 standard
deviations. That is, unusual values are either less than $\mu - 2 \sigma$ or greater than $\mu + 2 \sigma$
-The Acme Candy Company claims that 8% of the jawbreakers it produces actually result in a broken jaw. Suppose 9571 persons are selected at random from those who have eaten a jawbreaker produced at Acme
Candy Company. Would it be unusual for this sample of 9571 to contain 801 persons with broken jaws?

• A) Yes
• B) No

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Definitions:

Perfect Knowledge

A hypothetical situation in which all parties in the market have complete and absolute information about the market conditions and variables.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Total Revenue

The total income generated by the sale of goods or services related to the company's primary operations.

Peak Efficiency

The point at which an operation or process achieves its maximum output with the lowest input, without waste or undue strain on resources.