Used Car PricesAn automobile dealer finds that the average

Chapter 6, Problem 23E

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QUESTION:

Problem 23E

Used Car PricesAn automobile dealer finds that the average price of a previously owned vehicle is $8256. He decides to sell cars that will appeal to the middle 60% of the market in terms of price. Find the maximum and minimum prices of the cars the dealer will sell. The standard deviation is $1150, and the variable is normally distributed.

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QUESTION:

Problem 23E

Used Car PricesAn automobile dealer finds that the average price of a previously owned vehicle is $8256. He decides to sell cars that will appeal to the middle 60% of the market in terms of price. Find the maximum and minimum prices of the cars the dealer will sell. The standard deviation is $1150, and the variable is normally distributed.

ANSWER:

   Solution:

  Step 1 of 3:

  From the given problem we have

    The mean

    The standard deviation

 Here we have the middle 60% of the market in terms of price.

We have to find the maximum and minimum prices of the cars the dealer will sell. 


 

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