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Course: BUSINESS Acct 225 S, Spring 2010
School: Franklin
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5 Assign62 Group The amount of money that a family of four will spend at Kings Island, including the food and souvenirs, is \$130 with a standard deviation of \$12. Assume that this distribution is normal. 1. Find the probability that a particular family of four selected at random spends between \$150 and \$200? =P(150&lt;=x&lt;=200) = p(x&lt;=200)-p(x&lt;=150) =p(z&lt;=5.83)-p(z&lt;=1.667) 2....

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5 Assign62 Group The amount of money that a family of four will spend at Kings Island, including the food and souvenirs, is \$130 with a standard deviation of \$12. Assume that this distribution is normal. 1. Find the probability that a particular family of four selected at random spends between \$150 and \$200? =P(150<=x<=200) = p(x<=200)-p(x<=150) =p(z<=5.83)-p(z<=1.667) 2. What is the probability that the family spends less than \$140? P(x<140) = p(z<=2.833)=.7967 3. What is the probability that the family spends more than \$170? P(x>170) = 1- p(x<=170) = 1-p(z<=3.33) = 1-.9988 =0.0012 4. What is the probability that the family spends between \$130 and \$190? (Draw a graph to illustrate your results) =p(130<=x<=190) = p(x<=190)-p(x<=130) =p(z<=5)-p(z<=0) 5. Find the cost that represents the 50th percentile. Find 6. the cost that represents the 90th percentile. 7. 5% of the families spend below what value? X=(z* )+ x = (.05*12)+130 = 130.6 8. The top 5% of the families spend above what value? 9. Between what two values will the middle 50% of the families spend? 10. What percent of the families spend at least \$120? 11. Use the empirical rule to determine the following: A About 68% of the observations lie between what two values? B About 95% of the observations lie between what two values? C About 99% of the observations lie between what two values? 12. Use the standard normal distribution to determine the following A 68% of the observations lie between what two values? B 95% of the observations lie between what two values? C 99% of the observations lie between what two values? 13. Discuss the differences in the results for question 12 and question 11
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