One Classic Use of the Normal Distribution Is Inspired by a Letter

question 140

Multiple Choice

One classic use of the normal distribution is inspired by a letter to Dear Abbey in which a wife
Claimed to have given birth 308 days after a brief visit from her husband, who was serving in the
Navy. The lengths of pregnancies are normally distributed with a mean of 268 days and a standard
Deviation of 15 days. Given this information.
(i. the probability of a pregnancy lasting 300 days or longer is 0.0166.
(ii. The result suggests that the husband is the father of the child.

• A) (i) and (ii) are correct statements.
• B) (i) is a correct statement but not (ii).
• C) (ii) is a correct statement but not (i).
• D) (i) and (ii) are false statements.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, typically in the form of cash.

Dividends Payable

A liability recorded on a company's balance sheet representing the amount of dividends it owes to shareholders.

Retained Earnings

Profits that a company has decided to keep and reinvest in the business, rather than distribute to shareholders as dividends.

Contra-stockholders' Equity

An account that reduces the total amount of stockholders' equity, such as treasury stock or accumulated deficits.