Question

The mean cost of domestic airfares in the United States rose to an all-time high of $395 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B.

**a.** What is the probability that a domestic
airfare is $540 or more (to 4 decimals)?

**b.** What is the probability that a domestic
airfare is $265 or less (to 4 decimals)?

**c.** What if the probability that a domestic
airfare is between $320 and $510 (to 4 decimals)?

**d.** What is the cost for the 5% highest domestic
airfares? (rounded to nearest dollar)

Answer #1

Solution :

Given that ,

mean = = 395

standard deviation = = 100

(a)

P(x 540) = 1 - P(x 540)

= 1 - P((x - ) / (540 - 395) / 100)

= 1 - P(z 1.45)

= 1 - 0.9265

= 0.0735

P(x 540) = 0.0735

Probability = 0.0735

(b)

P(x 265) = P((x - ) / (265 - 395) / 100)

= P(z -1.30)

Using standard normal table,

P(x 265) = 0.0968

Probability = 0.0968

(c)

P(320 < x < 510) = P((320 - 395)/ 100) < (x - ) / < (510 - 395) / 100) )

= P(-0.75 < z < 1.15)

= P(z < 1.15) - P(z < -0.75)

= 0.8749 - 0.2266 = 0.6483

Probability = 0.6483

(d)

P(Z > z) = 5%

1 - P(Z < z) = 0.05

P(Z < z) = 1 - 0.05 = 0.95

P(Z < 1.65) = 0.95

z = 1.65

Using z-score formula,

x = z * +

x = 1.65 * 100 + 395 = 560

Cost = 560

The mean cost of domestic airfares in the United States rose to
an all-time high of $390 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$120. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $540 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $385 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$120. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $530 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $390 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$100. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $545 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $390 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$100. Use Table 1 in Appendix B.
A. What is the probability that a domestic
airfare is $260 or less (to 4 decimals)?
B. What if the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $390 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$110. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $545 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $385 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$115. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $560 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $395 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$100. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $555 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $375 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$100. Use Table 1 in Appendix B.
a. What is the probability that a domestic airfare is $540 or
more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $390 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$100. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $540 or more (to 4 decimals)?
b. What is the...

The mean cost of domestic airfares in the United States rose to
an all-time high of $375 per ticket. Airfares were based on the
total ticket value, which consisted of the price charged by the
airlines plus any additional taxes and fees. Assume domestic
airfares are normally distributed with a standard deviation of
$120. Use Table 1 in Appendix B.
a. What is the probability that a domestic
airfare is $560 or more (to 4 decimals)?
b. What is the...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 5 minutes ago

asked 19 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago