In: Statistics and Probability
One year consumers spent an average of $22 on a meal at a restaurant. Assume that the amount spent on a restaurant meal is normally distributed and that the standard deviation is $4 Complete parts (a) through (c) below.
a. What is the probability that a randomly selected person spent more than $24
b. What is the probability that a randomly selected person spent between $12 and $19
c. Middle 95% of the amounts of cash spent will fall between X = $___ and X = $___
Solution :
Given that ,
a) P(x > 24) = 1 - p( x< 24)
=1- p P[(x - ) / < (24 - 22) / 4]
=1- P(z < 0.50 )
= 1 - 0.6915
= 0.3085
b) P(12 < x < 19) = P[(12 - 22)/ 4) < (x - ) / < (19 - 22) / 4) ]
= P(-2.50 < z < -0.75)
= P(z < -0.75) - P(z < -2.50)
Using z table,
= 0.2266 - 0.0062
= 0.2204
c) Using standard normal table,
P( -z < Z < z) = 95%
= P(Z < z) - P(Z <-z ) = 0.95
= 2P(Z < z) - 1 = 0.95
= 2P(Z < z) = 1 + 0.95
= P(Z < z) = 1.95 / 2
= P(Z < z) = 0.975
= P(Z < 1.96) = 0.975
= z ± 1.96
Using z-score formula,
x = z * +
x = -1.96 * 4 + 22
x = 14.16
Using z-score formula,
x = z * +
x = 1.96 * 4 + 22
x = 29.84
The middle 95% are from $ 14.16 to $ 29.84