In Its Standardized Form,the Normal Distribution

question 132

Multiple Choice

In its standardized form,the normal distribution

• A)has a mean of 0 and a standard deviation of 1.
• B)has a mean of 1 and a variance of 0.
• C)has an area equal to 0.5.
• D)cannot be used to approximate discrete probability distributions.

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Definitions:

Perfect Substitutes

Two goods for which consumers are completely indifferent as to which to consume, meaning the consumption of one good can fully replace consumption of the other.

Perfect Complements

Goods that are often consumed together in fixed proportions, such that demand for one increases demand for the other.

Cardinal Utility Functions

Utilize numerical values to represent the level of satisfaction or utility that consumers derive from different bundles of goods and services.

Ordinal Utility Functions

A representation of a consumer's preference ranking for different bundles of goods, without specifying the exact level of satisfaction.