Question

According to the Air Transport Association of America, the average operating cost of an MD-80 jet airliner is $2,087 per hour. Suppose the operating costs of an MD-80 jet airliner are normally distributed with a standard deviation of $161 per hour. (Round the value of z to 2 decimal places. Round your answers to 2 decimal places.)

(a) At what operating cost would only 23% of the operating costs be less? $ enter the dollar amount at which only 23% of the operating costs would be less

(b) At what operating cost would 65% of the operating costs be more? $ enter the dollar amount at which 65% of the operating costs would be more

(c) What operating cost would be more than 85% of operating costs? $ enter the dollar amount that would be more than 85% of operating costs

Answer 1

given data :-

a).let a be the operating cost at which only 23% of the operating costs would be less.

according to the problem,

[ in any blank cell of excel type  =NORMSINV(0.23) press enter]

amount at which only 23% of the operating costs would be less = $ 1967.86

b).let b be the operating cost at which only 65% of the operating costs would be more.

according to the problem,

[ in any blank cell of excel type =NORMSINV(0.35) press enter]

amount at which only 65% of the operating costs would be more = $ 2024.21

c).let c be the operating cost that would be more than 85% of operating costs

according to the problem,

[ in any blank cell of excel type  =NORMSINV(0.85) press enter]

amount that would be more than 85% of operating costs = $ 2254.44

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