Suppose the Amount of Tar in Cigarettes Is Normally Distributed

question 36

Short Answer

Suppose the amount of tar in cigarettes is normally distributed with mean 3.5 mg and standard deviation 0.5 mg.
What proportion of cigarettes have a tar content exceeding 4.25 mg?
______________
"Low tar" cigarettes must have tar content below the 25th percentile of the tar content distribution. What is the value, which is the 25th percentile of the tar content distribution?
______________

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Definitions:

Materials Standards

The set specifications or benchmarks for the quality, quantity, and cost of materials used in manufacturing.

Price Variance

The difference between the actual cost of a product or service and its standard or expected cost, which can indicate issues with budgeting or pricing strategy.

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are a variable cost.

Standard Cost

A predetermined cost of manufacturing a product or performing a service, used as a benchmark for measuring performance.