Question

In: Statistics and Probability

A large retailer wants to reduce its stores' overhead costs by switching to more energy efficient...

A large retailer wants to reduce its stores' overhead costs by switching to more energy efficient light bulbs. The company plans on conducting a series of tests to determine if this strategy will be effective. The average cost of the bulbs they are considering using is $35.95, and the standard deviation for these prices is $2.75. If the prices of these bulbs have a normal probability distribution, find the probability that a random selection of ten of these bulbs will have an average cost of more than $34.00.  

Round your Z value(s) to two decimal places. Do not round any other intermediate calculations. Enter your answer as a decimal rounded to four places.

Probability =

Solutions

Expert Solution

Solution :

Given that ,

mean = = $35.95

standard deviation = = $2.75

n = 10

= 35.95

= / n = 2.75 / 10 = 0.8696

P( > 34.00) = 1 - P( < 34.00)

= 1 - P[( - ) / < (34.00-35.95) /0.8696 ]

= 1 - P(z < -2.24)

Using z table

= 1 - 0.0125

= 0.9875

probability= 0.9875

orchestra answered 2 years ago
Next > < Previous

Related Solutions

In an effort to reduce energy costs, a major university has installed more efficient lights as...
In an effort to reduce energy costs, a major university has installed more efficient lights as well as automatic sensors that turn the lights off when no movement is present in a room. Historically, the cost of lighting an average classroom for 1 week has been $265. To determine whether the changes have signficantly reduced costs, the university takes a sample of 50 classrooms. They find that the average cost for 1 week is $247 with a standard deviation of...
6.9 Grocery retailer. A large, national grocery retailer tracks productivity and costs of its facilities closely....
6.9 Grocery retailer. A large, national grocery retailer tracks productivity and costs of its facilities closely. Data below were obtained from a single distribution center for a one-year period. Each data point for each variable represents one week of activity. The variables included are the number of cases shipped (X1), the indirect costs of the total labour hours as a percentage (X2), a qualitative redictor called holiday that is coded 1 if the week has a holiday and 0 otherwise...
Natural gas providers, like Scana Energy, can create switching costs for its product. This means, a....
Natural gas providers, like Scana Energy, can create switching costs for its product. This means, a. it is difficult or costly for customers to switch to another seller of the product. b.it increases its costs by producing several versions of the product so customers can switch between versions. c.customers will find it more costly to stay with the company than to switch to another seller. d.it is difficult or costly for the seller to switch to producing a different product.
Walmart Stores, Inc. is the world's largest retailer. A large portion of the premises that the...
Walmart Stores, Inc. is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements and disclosures notes revealed the following information: Balance Sheet (in millions): 2016 2015 Assets Property: Property under capital lease $11,096 $5,239 Less: Accumulated amortization (4,751) (2,864) Liabilities Current liabilities: Obligations under finance leases due w/in 1 yr 551 287 Long-term debt: Long-term obligations under finance leases 5,816 2,606 Required: 1. Discuss some possible reasons why Walmart leases...
A large grocery retailer tracks productivity and costs of its facilities closely. Data in the Grocery...
A large grocery retailer tracks productivity and costs of its facilities closely. Data in the Grocery retailer file were obtained from a single distribution center for a one-year period. Each data point for each variable represents one week of activity. The variables included are total labor hours required to handle a shipment (Y) in the first column, the number of cases shipped (X1) in the second column, the indirect costs of the total labor hours as a percentage (X2) in...
A large grocery retailer tracks productivity and costs of its facilities closely. Data in the Grocery...
A large grocery retailer tracks productivity and costs of its facilities closely. Data in the Grocery retailer file were obtained from a single distribution center for a one-year period. Each data point for each variable represents one week of activity. The variables included are total labor hours required to handle a shipment (Y) in the first column, the number of cases shipped (X1) in the second column, the indirect costs of the total labor hours as a percentage (X2) in...
In an energy efficient world riding bicycles is becoming more and more popular, resulting in a...
In an energy efficient world riding bicycles is becoming more and more popular, resulting in a large number of customers. However, customers are generally indifferent between brands and believe that all bicycles are the same - making the market perfectly competitive. Unfortunately, making bicycle frames requires special skills so the supply of workers in this industry is upward-sloping, and the wages earned by frame makers increase as the industry output increases. Firms in this market face the following total cost:...
If society wishes to reduce pollution, why is it more efficient to tax the pollution rather...
If society wishes to reduce pollution, why is it more efficient to tax the pollution rather than set a limit on pollution?
If society wishes to reduce pollution, why is it more efficient to tax the pollution rather...
If society wishes to reduce pollution, why is it more efficient to tax the pollution rather than set a limit on pollution? If the government issues tradeable pollution permits (ie., a cap-and-trade policy), does it matter for economic efficiency (social welfare) whether all firms receive the same amount of permits, or whether some firms receive more permits than others?
The sanitation department of a large city wants to investigate ways to reduce the amount of...
The sanitation department of a large city wants to investigate ways to reduce the amount of recyclable materials that are placed in the landfill. They randomly sample 30 households and find that the sample mean amount of waste per household is 9.5 pounds/week and the standard deviation is 11.5 pounds/week. The distribution of the data is slightly right skewed but contains no extreme outliers. Construct a 99% confidence interval for the mean amount of waste per household. a. (5.385, 13.615)...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT