Solution Found!
The weekly amount of money spent on maintenance and
Chapter 4, Problem 64E(choose chapter or problem)
The weekly amount of money spent on maintenance and repairs by a company was observed, over a long period of time, to be approximately normally distributed with mean $400 and standard deviation $20. If $450 is budgeted for next week, what is the probability that the actual costs will exceed the budgeted amount?
a Answer the question, using Table 4, Appendix 3.
b Applet Exercise Use the applet Normal Probabilities to obtain the answer.
c Why are the labeled values different on the two horizontal axes?
Questions & Answers
QUESTION:
The weekly amount of money spent on maintenance and repairs by a company was observed, over a long period of time, to be approximately normally distributed with mean $400 and standard deviation $20. If $450 is budgeted for next week, what is the probability that the actual costs will exceed the budgeted amount?
a Answer the question, using Table 4, Appendix 3.
b Applet Exercise Use the applet Normal Probabilities to obtain the answer.
c Why are the labeled values different on the two horizontal axes?
ANSWER:
Solution:
Step 1 of 4:
It is given that the money spent on maintenance and repair in a week has a Normal distribution with mean $400 and standard deviation $20.
The amount budgeted for the coming week is $450.
We need to find the probability of weekly budget exceeding $450.