Two Normal Distributions Are Observed

question 56

Multiple Choice

Two normal distributions are observed.The first distribution has a mean of 12 and a standard deviation of 2.The second distribution has a mean of 0 and a standard deviation of 2.For which distribution will the z score for the mean be larger?

• A)The first z distribution.
• B)The second distribution.
• C)None,the z score will be the same.

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Definitions:

Price

Price is the amount of money that must be paid to acquire a good or service.

Consumer Surplus

The gap between what consumers are ready and able to spend for a good or service and the actual amount they pay.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service, reflecting the value they place on it.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and capable of spending on a product or service and what they end up spending.