Who sets the price in a monopolistic competition
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Answer:
7.3% percentage of the bearings produced will not be acceptable.
Step-by-step explanation:
Consider the provided information.
Average diameter of the bearings it produces is .500 inches. A bearing is acceptable if its diameter is within .004 inches of this target value.
Let X is the normal random variable which represents the diameter of bearing.
Thus, 0.500-0.004<X<0.500+0.004
0.496<X<0.504
The bearings have normally distributed diameters with mean value .499 inches and standard deviation .002 inches.
Use the Z score formula:
Therefore
Now use the standard normal table and determine the probability of that a ball bearing will be acceptable.
We need to find the percentage of the bearings produced will not be acceptable.
So subtract it from 1 as shown.
1-0.9270=0.073
Hence, 7.3% percentage of the bearings produced will not be acceptable.