In a Recent Survey, 83% of the Community Favored Building

question 96

Essay

In a recent survey, 83% of the community favored building a police substation in their neighborhood. You
randomly select 16 citizens and ask each if he or she thinks the community needs a police substation.
Decide whether you can use the normal distribution to approximate the binomial distribution. If so, find the
mean and standard deviation. If not, explain why.

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Definitions:

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the profit earned above production costs.

Price

The sum of money anticipated, needed, or handed over in exchange for something.

Consumer Surplus I

The gap between what consumers are prepared and able to spend on a product or service and what they end up paying.

Price

The amount of money required to purchase a good or service.