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4 years ago

A cracker manufacturer’s boxes have been found to have a standard deviation of 10 grams and a mean of 412 grams.

Business

1 answer:

pav-90 [236]4 years ago

8 0

Answer:

395.55 grams should be specified to ensure that 95 percent of the boxes will contain more than this weight.

Explanation:

We are given the following information in the question:

Mean, μ = 412 grams

Standard Deviation, σ = 10 grams

Formula:

$z_{score} = \displaystyle\frac{x-\mu}{\sigma}$

We have to find the value of x such that the probability is 0.95

P(X > x)

$P( X > x) = P( z > \displaystyle\frac{x - 412}{10})=0.95$

$= 1 -P( z \leq \displaystyle\frac{x - 412}{10})=0.95$

$=P( z \leq \displaystyle\frac{x - 412}{10})=0.05$

Calculation the value from standard normal z table, we have,

$\displaystyle\frac{x - 412}{10} = -1.645\\\\x = 395.55$

Hence, 395.55 grams should be specified to ensure that 95 percent of the boxes will contain more than this weight.

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If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage point

Arturiano [62]

Answer:

The given question is not complete. So, the correct and complete question is given below.

Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy's multiplier is 3.

a. If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? b. In what direction and by how much will it eventually shift?

The solution of this question is given below in the explanation section

Explanation:

a)If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level?

<u>Solution:</u>

Household wealth falls by 5 percent, so the consumer spending will decline by $5 billion per 1%.

Therefore, we first calculate the declining in consumption of household.

Decline in consumption=5 billion x 5% = $250 million

So,consumption in Aggregate demand falls by $250 million .

Now, we will calculate the declineing in interest rate:

Decline in Interest rate = 2% and investment speding increases by $20 billion for every 1%

Therefore, increase in investment spending = $20 billion x 2% = $400 million

Now, we will calculate the change in aggregate demand (AD)

Change in AD = change in consumption + change in investment

= 400 - 250 million = $150 million

Initially, aggregate demand curve shifts to the right by $150 million but the shift will be bigger due to the multiplier effect.

b) Given multiplier = 3

So, Real GDP changes by $150 million x 3 = $450 million

So,initially Aggregate demand curve shift to the right by $150 million but eventually shifts to the right by $450 million due to the multiplier.

7 0

4 years ago

"There is a growing demand of architects and engineers in developing

max2010maxim [7]

Answer:

yes the developing countries not only Nepal but India also I am in great need of such wonderful master architects and engineers . To develop their country condition they need search architects and engineers for their development

3 0

3 years ago

Companies whose stocks are listed on the NASDAQ stock exchange have their company name represented by either four or five letter

serious [3.7K]

Answer:

12,338,352 companies

Explanation:

If the companies' names can have either 4 or 5 letters, and teh letters can repeat themselves, then the total number of companies that can be listed on NASDAQ is:

4 letter names = 26 x 26 x 26 x 26 = 26⁴ = 456,976

5 letter names = 26 x 26 x 26 x 26 x 26 = 26⁵ = 11,881,376‬

total number of companies listed = 456,976 + 11,881,376‬ = 12,338,352

7 0

3 years ago

What is the relationship of a single firm's demand curve in a purely competitive industry?

pav-90 [236]

Pure competition or perfect competition is where all firms have full knowledge of what is going on in the market, where there is free flow of information between not only the producers, but also with the consumers.

As such, all firms have no dominant share of market power since each individual firm is able to produce the good of the same quality and quantity (factors of production are fluid, and no costs in transportation in this theory). And at the same time, consumers have full knowledge of the quality of good they are getting and hence no firm will be able to exploit the misinformation of a good for its own profits.

This builds up to the point of a perfectly elastic demand curve, where consumers know what amount and at which price point do they value the product at. And knowing for the fact that small individual firms in a purely competitive firm have no say over prices, they become the price takers for this kind of market. Thus where MB=MC, the equilibrium point is reached and it is also at the socially optimal level since all consumers have full knowledge of the pros and cons of consuming a product (hence no externalities).

Hope this helps!<span />

6 0

3 years ago

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing mod

fenix001 [56]

Answer: See explanation

Explanation:

Your question is not complete. Here is the completed question:

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model, what is the risk premium?

The risk premium will be the difference between the market portfolio and the treasury bill rate. This will be:

= 10% - 6%

= 4%

8 0

3 years ago