Price of GasolineThe average retail price of gasoline (all

Chapter 6, Problem 12E

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QUESTION:

Price of Gasoline The average retail price of gasoline (all types) for the first half of 2009 was 236.5 cents. What would the standard deviation have to be in order for a 15% probability that a gallon of gas costs less than $2.00?

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QUESTION:

Price of Gasoline The average retail price of gasoline (all types) for the first half of 2009 was 236.5 cents. What would the standard deviation have to be in order for a 15% probability that a gallon of gas costs less than $2.00?

ANSWER:

Step 1 of 2

Given,

The probability that a gallon costs less than $2.00 is 15%. That means the area under the standard normal distribution curve is 0.15. Then we can find the z value using the Table E, The Standard Normal Distribution in Appendix A.

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