When Driving the Nation's Highways, Anna Is Known as Something $$F = 10 ( \text { MilesOver } ) + 112$$

question 36

Essay

When driving the nation's highways, Anna is known as something of a lead foot. Her
number of miles per hour over the speed limit varies, but has a mean of 7.5 mph and
standard deviation of 2 mph. Unfortunately her state adjusts the fines so that the
amount of the fine (in dollars) is given by the formula: $$F = 10 ( \text { MilesOver } ) + 112$$ where F is the amount of the fine, and MilesOver is the number of miles over the
speed limit. Let random variable F be the amount of her fine if she is stopped for
speeding.
a) What is the mean of F?
b) What is the standard deviation of F?

Understand the mechanics and implications of occupational segregation.

Be familiar with income equality measures, including the Lorenz curve and Gini coefficient.

Analyze the relationship between income inequality, economic efficiency, and social welfare.

Recognize the role of skills, abilities, and discrimination in creating income disparities.

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the expenditures that consumers must make even when they have no income.

Disposable Income

Refers to the funds that individuals can spend or save after all income taxes are deducted.

Total Consumption

The aggregate amount of goods and services consumed in an economy, including individual and governmental consumption.

Saving

The portion of income not spent on current expenditures or taxes, often put aside for future use or investment.