Question

In: Accounting

2) A sample of customers for Montana Gas and Electric resulted in the following distribution of...

2) A sample of customers for Montana Gas and Electric resulted in the following distribution of monthly charges.

Amount ($)	Number
0 – 49	13
50 – 99	22
100 – 149	34
150 – 199	26
200 - 249	5

a) What is the probability that a customer has monthly electric cost of $150 or more?

b) What is the probability of a customer having a monthly electric cost of less than $150?

Expert Solution

Formula:

Probability of occurrence of an event = Number of Favorable outcomes/Total number of possible outcomes

Answer a)

Calculation of probability that a customer has monthly electric cost of $ 150 or more

Probability of a customer having monthly electric cost of $ 150 or more = Total number of customers having monthly electricity bill of $ 150 or more/ Total number of customers

= (26 + 5)/ (13 + 22 + 34 + 26 + 5)

= 31/ 100

= 0.31

Therefore the probability of a customer having electric cost $ 150 or more is 0.31

Answer b)

Calculation of probability that a customer has monthly electric cost of less than $ 150

Probability of a customer having monthly electric cost of less than $ 150 = Total number of customers having monthly electricity bill of less than $ 150/ Total number of customers

= (13 + 22 + 34)/ (13 + 22 + 34 + 26 + 5)

= 69/ 100

= 0.69

Therefore the probability of a customer having electric cost of less than $ 150 is 0.69

ekkarill92 answered 2 years ago

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