The Chief Chemist for a Major Oil/gasoline Production Company Claims

question 17

Essay

The chief chemist for a major oil/gasoline production company claims that the regular unleaded gasoline produced by the company contains on average 4 grams of a certain ingredient. The chemist further states that the distribution of this ingredient per L of regular unleaded gasoline is normal and has a standard deviation of 1.2 grams
-What is the probability of finding an average in excess of 4.3 grams of this ingredient from randomly inspected 100L of regular unleaded gasoline?

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Definitions:

Substitution Effect

Change in consumption of a good associated with a change in its price, with the level of utility held constant.

Perfectly Competitive

A market structure characterized by a large number of small sellers and buyers, homogeneous products, and freedom of entry and exit.

Profit Maximizing

A process or strategy used by businesses to determine the best output and pricing levels in order to achieve the highest profit.

Labor

Human effort, both physical and mental, employed in the production of goods and services.