Average Annual Revenue Suppose That the Average Annual Revenue of a Small

question 106

Short Answer

Average Annual Revenue
Suppose that the average annual revenue of a small business is $150,000 with a standard deviation of $40,000.Assume that the revenue distribution is normal. ​ ​
-{Average Annual Revenue Narrative} What is the probability that one business selected at random makes less than $120,000?

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Definitions:

Wage Rate

The rate at which labor is compensated by employers, typically expressed per hour or year.

Short-run Production Function

A mathematical representation of the relationship between a firm's output and the amounts of inputs used, assuming some inputs are fixed.

Variable Factor

An input in the production process that can be adjusted in the short term to change the output level, such as labor or raw materials.

Fixed Factors

Elements of production that cannot be easily increased or decreased in the short term, such as land, buildings, or capital equipment.