Grant is a member of a book club. He pays a $10 yearly membership fee and can purchase books through the club for $2.75 each. Hi
1 answer:
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Answer:
a) 0.0392
b) 0.4688
c) At least $39,070 to be among the 5% most expensive.
Step-by-step explanation:
Problems of normally distributed samples can be solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
In this problem, we have that:
a. What is the probability that a wedding costs less than $20,000 (to 4 decimals)?
This is the pvalue of Z when X = 20000. So
has a pvalue of 0.0392.
So this probability is 0.0392.
b. What is the probability that a wedding costs between $20,000 and $30,000 (to 4 decimals)?
This is the pvalue of Z when X = 30000 subtracted by the pvalue of Z when X = 20000.
X = 30000
has a pvalue of 0.5080.
X = 20000
has a pvalue of 0.0392.
So this probability is 0.5080 - 0.0392 = 0.4688
c. For a wedding to be among the 5% most expensive, how much would it have to cost (to the nearest whole number)?
This is the value of X when Z has a pvalue of 0.95. So this is X when Z = 1.645.
The wedding would have to cost at least $39,070 to be among the 5% most expensive.