Question

6) A recent survey by the American Resort Development Association reports that the average price of a new timeshare is $21,455 (gives you one week a year). Assume a NORMAL distribution with a mean of $21,455 and a standard deviation of 1000 (not the real standard deviation figure). Please be sure to use the table at the back of the book. (40 points)

Source: Consumer Reports, “What to Know Before Buying”, p. 41, February 2020.

Determine the following probabilities for the cost of the new timeshare to be:

  

1. more than 25,000                                                                             _____________

2. less than 20,000                                                                                _____________

3. between 21,000 and 23,000                                                             _____________

the probability is 90% that there cost will be less than this    D) _____________

Answer 1