Dover Motors is a car dealership that sells new and used cars. Suppose they sold 140 used cars during the first quarter of 2011.
The average selling price was $10,325 with a standard deviation of $2,880. A random sample of 60 used cars from this population was selected. What is the probability that the sample mean exceeds $10,000?
1 answer:
Answer:
The probability that the sample mean exceeds $10,000 is 0.8078.
Step-by-step explanation:
The objective of the problem is obtained below:
From the given information, let X denotes the number of used cars which follows normal distribution with mean 10,325 and the standard deviation of 2,880 and sample size is 60 used cars. That is, u=10,325,δ = 2,880 and n=60
are used to estimate the probability that the sample mean exceeds 10,000.
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Answer:
100% of the 2nd monthly payment go toward the repayment of principal.
Step-by-step explanation:
The loan taken is the Principal which is mentioned as $72,500 with interest at a nominal rate of 20%. Firstly, it is important to understand that nominal rate means <em>non-compounding </em>rate. Simply put will be a "<em>one-time charged" </em>rate on the loan. Since this is given as 20% of the Principal. It is calculated thus: ×
= $14,500. So the interest on the loan is $14,500. Added to the Principal the total amount to be paid back by the company becomes: $72,500 + $14,500 = $87,000. To pay back this amount at equal end-of-month installments in 1 year (12 months), we divide the total amount by 12. i.e
= $7250. This means, the monthly payment will be $7,250. Since the monthly payment pays only 10% of the initial principal $72,500. By the second month only 20% of the Principal would have been paid. So all of the monthly payment will go towards repaying the principal