The Tread Life of Tires Mounted on Light-Duty Trucks Follows

question 24

Multiple Choice

The tread life of tires mounted on light-duty trucks follows the normal probability distribution with a population mean of 60,000 miles and a population standard deviation of 4,000 miles. Suppose we select a sample of 40 tires and use a simulator to determine the tread life. What is the likelihood of finding that the sample mean is between 59,050 and 60,950?

• A)0.4332
• B)0.8664
• C)1.00
• D)Very likely

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Definitions:

Total Liabilities

The sum of all financial obligations a company owes to external parties, including long-term and short-term liabilities.

Note Payable

A written promise to pay a specific amount of money, usually with interest, at a future date.

Interest Incurred

The cost of borrowing money, represented as the amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.

Discounted Note

A promissory note or bond sold at a price lower than its face value, which will pay the face value at maturity.