The Rent-n-Drive car rental company knows from experience that the number of miles per day that customers drive a rental car upon renting is normally distributed with a mean of 175 miles/day.  The company also knows that only 5% of the times are their rental cars driven more than 250 miles/day upon renting.   Today the  company  has  rented  5  cars  to  customers,  what  is  the  probability  that  the  averaged miles/day driven by these customers will exceed 200 miles/day?

MATLAB: An Introduction with Applications
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The Rent-n-Drive car rental company knows from experience that the number of miles per day that customers drive a rental car upon renting is normally distributed with a mean of 175 miles/day.  The company also knows that only 5% of the times are their rental cars driven more than 250 miles/day upon renting.

 

  1. Today the  company  has  rented  5  cars  to  customers,  what  is  the  probability  that  the  averaged miles/day driven by these customers will exceed 200 miles/day?
Expert Solution
Step 1

Given :

the number of miles per day that customers drive a rental car upon renting is normally distributed with

a mean of 175 miles/day

We need to calculate the standard deviation from the information given

P(X  >x) = 0.05   , X = 250 miles

First we need to find the corresponding Z value to probability 0.05

Using Excel : =NORM.S.INV(0.95)

Z value = 1.645

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