Compute the point elasticity of demand when p=40
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Answer:
The sketch is provided in attached file.
0.0228
Step-by-step explanation:
The sketch is made by taking center at µ=80 and the desired probability of the mentioned area is also demonstrates.
The probability randomly selecting a score greater than 100 from this distribution can be calculated as
P(X>100)=P((X-µ)/σ > (100-80)/10)
P(X>100)=P(z>2)
P(X>100)=P(0<z<∞)-P(0<z<2)
Using normal table the probability corresponds to z-score=2 is 0.0228 and the area on the right side of normal curve is 0.5. So,
P(X>100)=0.5-0.4772=0.0228
The probability randomly selecting a score greater than 100 is 2.28%.
