Question

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $203 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $54. Use Table 1 in Appendix B.

a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)?

b. What is the probability that a hotel room costs less than $140 per night (to 4 decimals)?

c. What is the probability that a hotel room costs between $199 and $299 per night (to 4 decimals)?

d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar.

Select your answer -more or less

Answer 1

a)

=0.6700

b)

=0.1210

c)

d)

z score for 20% (i.e 80 percentile) most expensive hotel is 0.84

So, cost of hotel room is 203+0.84(54)=248.36

cost of hotel room is more than $283.46