The average price of personal computers manufactured by MNM Company is $1,200 wi

Question

The average price of personal computers manufactured by MNM Company is $1,200 with a standard deviation of $220.  Furthermore, it is known that the computer prices manufactured by MNM are normally distributed.  All probabilities should be to four decimal places.

            a.   What is the probability that a randomly selected computer will have a price of at least $1,530?

            b.   Computers with prices of more than $1,750 receive a discount.  What percentage of the computers will receive the discount?

            c.   What are the minimumand the maximumvalues of the middle 95% of computer prices?

Explanation / Answer

Solution:- Given that mean = $1200, standard deviation of $220

a. P(X >= 1530) = P(X - ?)/? >= (1530 - 1200)/220)
= P(Z >= 1.5)
= 0.0668

b. P(X >= 1750) = P(Z >= (1750 - 1200)/220)
= P(Z >= 2.5)
= 0.0062

c. ? +/- Z*? = 1200 +/- 1.96*220 = (768.8,1631.2)

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