If Avery is willing to pay $10 for a pizza, Pia is willing to pay $13, and Sylvio is willing to pay $15, how much consumer surpl
1 answer:
Answer:
$4
Step-by-step explanation:
Total consumer surplus is given by the difference between the willingness to pay of each customer to the actual price of a good.
Since Avery is only willing to pay $10 and the pizza costs $12, Avery will not buy a pizza and should not be considered for consumer surplus.
Since Pia is willing to pay $13, and Sylvio is willing to pay $15, consumer surplus is:
When the price of pizza is $12, a consumer surplus of $4 is achieved.
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Answer:
(a) The probability that a single randomly selected value lies between 158.6 and 159.2 is 0.004.
(b) The probability that a sample mean is between 158.6 and 159.2 is 0.0411.
Step-by-step explanation:
Let the random variable <em>X</em> follow a Normal distribution with parameters <em>μ</em> = 155.4 and <em>σ</em> = 49.5.
(a)
Compute the probability that a single randomly selected value lies between 158.6 and 159.2 as follows:
*Use a standard normal table.
Thus, the probability that a single randomly selected value lies between 158.6 and 159.2 is 0.004.
(b)
A sample of <em>n</em> = 246 is selected.
Compute the probability that a sample mean is between 158.6 and 159.2 as follows:
*Use a standard normal table.
Thus, the probability that a sample mean is between 158.6 and 159.2 is 0.0411.