Question

Assume the cost of an extended 100,000 mile warranty for a particular SUV follows the normal distribution with a mean of $1,450 and a standard deviation of $75. Complete parts (a) through (d) below.

a) Determine the interval of warranty costs from various companies that are one standard deviation around the mean.

The interval of warranty costs that are one standard deviation around the mean ranges from _________ to ________.(Type integers or decimals. Use ascending order.)

b) Determine the interval of warranty costs from various companies that are two standard deviation around the mean.

The interval of warranty costs that are one standard deviation around the mean ranges from _________ to ________.(Type integers or decimals. Use ascending order.)

c) Determine the interval of warranty costs from various companies that are three standard deviations around the mean.

The interval of warranty costs that are three standard deviation around the mean ranges from _________ to ________.(Type integers or decimals. Use ascending order.)

d)An extended 100,000 mile warranty for this type of vehicle is advertised at $1,750. Based on the previous results, what conclusions can you make?

A. This warranty is better quality than warranties offered by competing companies due to the fact that it is more than three standard deviations above the mean.

B.The $1,750 cost of this warranty is slightly higher than average due to the fact that it is more than three standard deviations above the mean.

C.The $1,750 cost of this warranty must be an error in the advertisement because a data value cannot be more than three standard deviations from the mean.

D.The $1,750 cost of this warranty is much higher than average due to the fact that it is more than three standard deviations above the mean.

Answer #1

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