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Used Car PricesAn automobile dealer finds that the average
Chapter 6, Problem 23E(choose chapter or problem)
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.
Questions & Answers
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.