Customers of the Key Refining Company Charge an Average of $70

question 63

Multiple Choice

Customers of the Key Refining Company charge an average of $70 per month. The distribution of amounts charged is approximately normal,with a standard deviation of $10. What is the probability of selecting a credit card customer at random and finding the customer charged between $70 and $83?

• A)0.1962
• B)0.4032
• C)0.3413
• D)0.4750

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Definitions:

Budget Constraint

The constraint on the collection of goods or services a consumer is able to purchase, determined by their income and the cost of those goods or services.

Utility

A measure of satisfaction or happiness that consumers derive from consuming goods and services.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that give an individual equal satisfaction and utility.

Budget Constraint

The limitations on the spending decisions of consumers based on their income and the prices of goods and services.