The Mean Rent for a Two-Bedroom Apartment in the Greater

question 56

Multiple Choice

The mean rent for a two-bedroom apartment in the Greater Toronto Area is $2,000 per month. The
Distribution of the monthly costs does not follow the normal distribution. In fact, it is positively
Skewed. What is the probability of selecting a sample of 36 two-bedroom apartments and finding
The mean to be at least $1,500 per month? The standard deviation of the sample is $300.

• A) 34.13%
• B) 84.13%
• C) 50%
• D) 100%

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Definitions:

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity produced.

Total Costs

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

TC Curve

A graphical representation showing the total cost of producing different quantities of a good or service.

TVC Curve

A graphical representation showing the relationship between a firm's total variable costs and its output level.