Question

Historic data suggest that among US teens and young adults the demand for buying used Toyota Camry is high. The price of used Toyota Camry is normally distributed with an average price of $7638 with a standard deviation of $516.

Suppose you want to sell your used Toyota Camry. What is the chance that a buyer would pay at least $8000? Enter your answer to 4 decimal places.

Answer 1

Solution :

Given that ,

mean = = $7638

standard deviation = = $516

P(x $8000) = 1 - P(x   8000)

= 1 - P[(x - ) / (8000 - 7638) / 516]

= 1 -  P(z 0.7016)   

= 1 - 0.7585

= 0.2415

Answer = 0.2415