Since the sample is greater than 10, we can approximate this binomial problem with a normal distribution.

First, calculate the z-score:

z = (x - μ) / σ = (37000 - 36000) / 7000 = 0.143

The probability P(x > 37000$) = 1 - P(x < 37000$),
therefore we need to look up at a normal distribution table in order to find
P(z < 0.143) = 0.55567
And
P(x > 37000$) = 1 - 0.55567 = 0.44433

Hence, there is a 44.4% probability that the sample mean is greater than $37,000.

4 0

3 years ago

For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inel

adelina 88 [10]

Answer:

Demand is inelastic at p = 9 and therefore revenue will increase with

an increase in price.

Step-by-step explanation:

Given a demand function that gives q in terms of p, the elasticity of demand is

$E=|\frac{p}{q}\cdot \frac{dq}{dp} |$

If E < 1, we say demand is inelastic. In this case, raising prices increases revenue.
If E > 1, we say demand is elastic. In this case, raising prices decreases revenue.
If E = 1, we say demand is unitary.

We have the following demand equation $D(p)=-\frac{3}{4}p+29$ ; p = 9

Applying the above definition of elasticity of demand we get:

$E(p)=\frac{p}{q}\cdot \frac{dq}{dp}$

where

p = 9
q = $-\frac{3}{4}p+29$
$\frac{dq}{dp}=\frac{d}{dp}(-\frac{3}{4}p+29)$

$\frac{d}{dp}\left(-\frac{3}{4}p+29\right)=-\frac{d}{dp}\left(\frac{3}{4}p\right)+\frac{d}{dp}\left(29\right)\\\\\frac{d}{dp}\left(-\frac{3}{4}p+29\right)=-\frac{3}{4}$