Question

The average (mean) paid by the Bureau of Indian Affairs (BIA) for a 5-day training workshop contracted with the private sector is $1,500 (standard deviation 5 $280; normal distribution). Perk Morgan, a BIA employee, would like to attend a sensitivity training workshop in Bermuda (he feels that he must go to an exotic location to get in touch with his true feelings); the government rate for the training workshop is $2,400. What percentage of 5-day training workshops funded by the BIA exceed this amount? Perk has also inquired about a sensitivity training workshop to be held in Sausalito, California (less exotic location, but Perk will still be able to get in touch with feelings); the cost for this workshop is $2,100. What percentage of BIA-sponsored training workshops exceed this cost? What would you advise Perk to do?

Answer 1

Here it is given that distribution is normal with mean=1500 and standard deviation=280

Firstly we need to find

As distribution is normal we can convert x to z

So 0.07% of 5-day training workshops funded by the BIA exceed this amount

Now we need to find

So 1.61% of BIA-sponsored training workshops exceed this cost.

As probability of Bermuda is less, we would advice Perk to go for training workshop in Bermuda