Suppose the Average Price of Gasoline for a City in the United

question 88

Multiple Choice

Suppose the average price of gasoline for a city in the United States follows a continuous uniform distribution with a lower bound of $3.50 per gallon and an upper bound of $3.80 per gallon. What is the probability a randomly chosen gas station charges more than $3.70 per gallon?

• A) 0.3000
• B) 0.3333
• C) 0.6667
• D) 1.0000

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest.

Liabilities

Financial obligations owed by a business to creditors, including loans, accounts payable, and any other debts.

Owner's Equity

The amount of the business that belongs to the owners minus any liabilities owed by the business.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including loans, accounts payable, and bonds payable.