A Cola-Dispensing Machine Is Set to Dispense a Mean of 2.02

question 134

Multiple Choice

A cola-dispensing machine is set to dispense a mean of 2.02 litres into a container labelled 2 liters. Actual quantities dispensed vary and the amounts are normally distributed with a standard deviation of 0.015 litres. What is the probability a container will have less than 2 litres?

• A) 0.0918
• B) 0.3413
• C) 0.1926
• D) 0.8741

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Definitions:

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, facilitating the flow of funds in the financial system, such as banks and investment companies.

Maturity

The point in time when a financial instrument, such as a bond or loan, reaches its due date and the principal must be repaid.

Bond

A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period at a variable or fixed interest rate.

Characteristics Of A Bond

Aspects that define a bond, including its maturity date, face value, coupon rate, and issuer, determining its suitability for investors.