The Amount of Cereal That a Manufacturer Puts in Its

question 126

Multiple Choice

The amount of cereal that a manufacturer puts in its boxes of cereal is a random variable with a mean of 1020 g and a standard deviation of 10 g.The amount of cereal that Tyler eats for breakfast is a random variable with a mean of 65 g and a standard deviation of 6 g.The amount of cereal that Tyler's wife,Suzanne,eats for breakfast is a random variable with a mean of 53 g and a standard deviation of 2 g.If Tyler and Suzanne open a new packet of cereal one Monday morning,find the mean and standard deviation of the amount of cereal remaining in the packet after one breakfast.Assume that the amount that Tyler eats is independent of the amount Suzanne eats.

• A)μ = 1138 g,σ = 11.83 g
• B)μ = 902 g,σ = 11.83 g
• C)μ = 1138 g,σ = 2 g
• D)μ = 902 g,σ = 7.75 g
• E)μ = 902 g,σ = 18 g

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Definitions:

Stackelberg

A model of a market in which one leader firm sets its output first, and then other firms follow, adjusting their outputs accordingly, in strategic game theory.

Cournot Model

A model in oligopoly theory where firms compete on the quantity of output they decide independently and simultaneously.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition on factors other than just price, such as quality and marketing.

Bertrand Model

Oligopoly model in which firms produce a homogeneous good, each firm treats the price of its competitors as fixed, and all firms decide simultaneously what price to charge.