It Has Been Estimated That 25% of All University Students

question 61

Multiple Choice

It has been estimated that 25% of all university students switch majors within their first two years of
Starting classes. If a random sample of 500 third-year students is taken at a city university, what is
An estimate of the probability that 20% or more had switched majors within their first two years?

• A) .4951
• B) .0049
• C) .9951
• D) 0.5059

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Definitions:

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or sales activities.

Average Variable Cost

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

Average Fixed Cost

The fixed costs of production divided by the number of units produced, showing how fixed costs per unit change with changes in output.

Average Total Cost

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