A Major Department Store Has Determined That Its Customers Charge

question 28

Short Answer

A major department store has determined that its customers charge an average of $500 per month, with a standard deviation of $80. Assume the amounts of charges are normally distributed.
a.What percentage of customers charges more than $380 per month?
b.What percentage of customers charges less than $340 per month?
c.What percentage of customers charges between $644 and $700 per month?

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Definitions:

Market Failure

A circumstance where the distribution of goods and services through an unregulated market fails to be efficient, frequently resulting in a decrease in overall social welfare.

Externalities

Expenses or advantages impacting individuals who did not decide to bear those expenses or advantages.

Public Goods

Goods or services that are available to all members of a society, typically provided by the government, with no one excluded from benefitting.

Efficient Mix

The most advantageous combination of goods and services that can be produced and distributed with the available resources and technology, maximizing overall welfare.