Mrs Smith's Reading Class Can Read an Average of 175

question 36

Short Answer

Mrs. Smith's reading class can read an average of 175 words per minute with a standard deviation of 20 words per minute. The top 3% of the class is to receive a special award. What is the minimum number of words per minute a student would need to read in order to get the award? Assume the data is normally distributed.

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Definitions:

Common Resource

A natural or man-made resource where one user's consumption reduces or diminishes the utility of that resource for others, and where it is difficult to exclude anyone from using the resource.

Rival

Refers to a competitor within the same market that offers similar products or services.

Nonexcludable

A nonexcludable good or service is one where it is impossible, or highly costly, to prevent someone from benefiting from it, regardless of whether they have contributed towards it, such as public parks or national defense.

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities (costs not borne by the party causing them) to correct the market outcome.