TABLE 6-2 John Has Two Jobs. for Daytime Work at a Jewelry

question 88

Short Answer

TABLE 6-2
John has two jobs. For daytime work at a jewelry store he is paid $15,000 per month, plus a commission. His monthly commission is normally distributed with mean $10,000 and standard deviation $2,000. At night he works as a waiter, for which his monthly income is normally distributed with mean $1,000 and standard deviation $300. John's income levels from these two sources are independent of each other.
-Referring to Table 6-2, for a given month, what is the probability that John's income as a waiter is between $700 and $1600?

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods which can be purchased with a given budget at specific prices.

Equilibrium Position

A situation in which the supply and demand in the market are equal, leading to stable prices.

Quantity of Y

A term indicating the amount or volume of a product or commodity denoted by 'Y', often measured in units or quantities.

Downsloping Demand Curve

Illustrates the inverse relationship between the price of a good or service and the quantity demanded, indicating that demand decreases as price increases.