Question

In: Statistics and Probability

One year consumers spent an average of $23 on a meal at a restaurant. Assume that...

One year consumers spent an average of $23 on a meal at a restaurant. Assume that the amount spent on a restaurant meal is normally distributed and that the standard deviation is $6. Complete parts​ (a) through​ (c) below.

a. What is the probability that a randomly selected person spent more than $28?=0.2033

P(X>$28)=0.2033

b. What is the probability that a randomly selected person spent between $9 and $21?=0.3608

P($9<X<$21)=0.3608

c. Between what two values will the middle 95% of the amounts of cash spent​ fall?

The middle 95% of the amounts of cash spent will fall between X= $? and X=$?

(Round to the nearest cent as​ needed.)

Solutions

Expert Solution

a)

µ =    23                          
σ =    6                          
right tailed                              
X ≥   28                          
                              
Z =   (X - µ ) / σ =   0.83                      
                              
P(X ≥   28   ) = P(Z ≥   0.83   ) =   P ( Z <   -0.83   ) =    0.2023(answer)
excel formula for probability from z score is =NORMSDIST(Z)                              
-----------------------------

b)

µ =    23                              
σ =    6                              
we need to calculate probability for ,                                  
9   ≤ X ≤    21                          
X1 =    9   ,   X2 =   21                  
                                  
Z1 =   (X1 - µ ) / σ =   -2.333                          
Z2 =   (X2 - µ ) / σ =   -0.333                          
                                  
P (   9   < X <    21   ) =    P (    -2.333333333   < Z <    -0.333   )
                                  
= P ( Z <    -0.333   ) - P ( Z <   -2.333   ) =    0.3694   -    0.0098   =    0.3596(answer)
excel formula for probability from z score is =NORMSDIST(Z)                                  

--------------------------------

c)

µ =    23                          
σ =    6                          
proportion=   0.95  

proportion left is equally distributed both left and right side of normal curve i.e 0.05/2 = 0.025
                              
z value at   0.025   = ± 1.96 (excel formula =NORMSINV(α))              
z=(x-µ)/σ                              
so, X=zσ+µ=                              
X1 =   -1.96 *   6   +   23   =   11.24
X2 =   1.96 *   6   +   23   =   34.76

The middle 95% of the amounts of cash spent will fall between X= 11.24  and X=$ 34.76


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