Question

2. Not everyone pays the same price for the same model of a new car. Prices paid for a particular model of a new car take on a normal distribution. The mean is $17,000 and the standard deviation is $500. Start by drawing a picture of the normal distribution and then labeling this information. What percentage of buyer paid between $17,000 and $18,000 for a new car?

Answer 1

Solution :

Given that ,

mean = = 17000

standard deviation = = 500

P( 17000< x < 18000) = P[(17000 -17000)/500 ) < (x - ) /  < (18000 -17000) /500 ) ]

= P(0 < z < 2 )

= P(z < 2 ) - P(z < 0)

Using standard normal table

= 0.9772 - 0.5 = 0.4772

Probability = 0.4772 = 47.72%

Answer = 47.72%