Automobile repair costs continue to rise with the average cost now at $367 per repair (U.S. News & World Report website, January 5, 2015). Assume that the cost for an automobile repair is normally distributed with a standard deviation of $88. Answer the following questions about the cost of automobile repairs. a. W hat is the probability that the cost will be more than $450? b. W hat is the probability that the cost will be less than $250? c. W hat is the probability that the cost will be between $250 and $450?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Automobile repair costs continue to rise with the average cost now at $367 per repair (U.S.
News & World Report website, January 5, 2015). Assume that the cost for an automobile
repair is
questions about the cost of automobile repairs.
a. W hat is the probability that the cost will be more than $450?
b. W hat is the probability that the cost will be less than $250?
c. W hat is the probability that the cost will be between $250 and $450?
d. If the cost for your car repair is in the lower 5% of automobile repair charges, what is
your cost?Automobile repair costs continue to rise with the average cost now at $367 per repair (U.S.
News & World Report website, January 5, 2015). Assume that the cost for an automobile
repair is normally distributed with a standard deviation of $88. Answer the following
questions about the cost of automobile repairs.
a. W hat is the probability that the cost will be more than $450?
b. W hat is the probability that the cost will be less than $250?
c. W hat is the probability that the cost will be between $250 and $450?
d. If the cost for your car repair is in the lower 5% of automobile repair charges, what is
your cost?
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