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

question 72

Multiple Choice

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

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

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Definitions:

Present Value

The present value of a sum of money or series of cash flows expected in the future, calculated using a specified discount or interest rate.

Contract Rate

It is the interest rate stated in a contract, such as a loan or lease agreement.

Non-interest-bearing Notes

Debt instruments that do not accrue interest over time, thus repaid at their face value.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow over a similar term the funds necessary to purchase or lease an asset.