A Cola-Dispensing Machine Is Set to Dispense a Mean of 2.02

question 72

Multiple Choice

A cola-dispensing machine is set to dispense a mean of 2.02 liters into a container labeled 2 liters. Actual quantities dispensed vary,and the amounts are normally distributed with a standard deviation of 0.015 liters. What is the probability a container will have less than 2 liters?

• A)0.0918
• B)0.3413
• C)0.1926
• D)0.8741

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Definitions:

Cost of Equity

The return that investors require for an investment in a firm's equity, representing the compensation for bearing risk.

Growth Rate

The rate at which a company's earnings or revenue increases over a specified period.

Required Return

The minimum rate of return that investors expect or require from an investment to make it worthwhile.

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.