Professors at a Local University Earn an Average Salary of $80,000

question 43

Multiple Choice

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000. The salary distribution is approximately bell-shaped. What can be said about the percentage of salaries that are at least $74,000?

• A) It is about 68%.
• B) It is about 84%.
• C) It is about 95%.
• D) It is about 97.5%.

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Definitions:

Physical Depreciation

The process through which tangible assets lose value over time due to wear and tear or obsolescence.

Licensing Arrangements

Legal agreements where a licensor allows a licensee to use rights, such as trademarks, patents, or technology, under defined conditions.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance or unfair advantage.

Perfect Knowledge

An assumption in economics that all consumers and producers have complete and accurate information about the price and quality of goods and services, making markets more efficient.