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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 =

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 3 years ago

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

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