If a new car manufacturer wants to price its new luxury vehicle to be comparible

Question

If a new car manufacturer wants to price its new luxury vehicle to be comparible with the top 10% of vehicles, at what value should they set their price? What is the probability that any given car's price will fall below $20,000?

Model Eng Size Cylinders MSRP City Mpg Highway Mpg Weight Type Country Range_Rover_HSE 4.4 8 $           72,285 12 16 5,379 SUV England S-Type 3 6 $           43,730 18 26 3,777 Sedan England X-Type 2.5 6 $           29,330 19 28 3,428 Sedan England XJ-Series 4.2 8 $           69,330 18 28 3,803 Sedan England Cooper 1.6 4 $           19,899 24 33 2,678 Sedan England G500 5 8 $           76,900 12 14 5,423 SUV Germany Touareg 3.2 6 $           35,900 15 20 5,086 SUV Germany S-Class 4.3 8 $           74,250 17 24 4,160 Sedan Germany A8_L 4.2 8 $           68,500 17 24 4,399 Sedan Germany A6 2.7 6 $           42,650 18 25 3,836 Sedan Germany 745i 4.4 8 $           69,300 18 26 4,376 Sedan Germany E-class 3.2 6 $           50,575 19 27 3,691 Sedan Germany 5_Series 2.5 6 $           39,800 19 28 3,428 Sedan Germany Jetta_GLI 2.8 6 $           23,210 21 29 3,179 Sedan Germany 3_Series 2.5 6 $           28,100 20 29 3,219 Sedan Germany C-class 1.8 4 $           29,250 22 30 3,250 Sedan Germany Passat_GL 1.8 4 $           22,855 21 30 3,322 Sedan Germany A4 1.8 4 $           25,550 22 31 3,252 Sedan Germany Sequoia_SR5 4.7 8 $           35,155 14 17 5,270 SUV Japan Xterra_XE 3.3 6 $           20,500 15 19 3,777 SUV Japan FX35 3.5 6 $           36,050 16 22 4,215 SUV Japan Element_EX 2.4 4 $           19,700 22 26 3,441 SUV Japan MPV_LX 3 6 $           23,490 18 25 3,772 Minivan Japan Odyssey_EX 3.5 6 $           26,990 18 25 4,365 Minivan Japan Sienna_LE 3.3 6 $           24,480 19 27 4,120 Minivan Japan GS_300 3 6 $           38,875 18 25 3,649 Sedan Japan LS_430 4.3 8 $           55,375 18 25 3,990 Sedan Japan G35 3.5 6 $           28,150 18 26 3,336 Sedan Japan TL_3.2 3.2 6 $           32,650 20 28 3,575 Sedan Japan Altima 2.5 4 $           19,200 23 29 3,088 Sedan Japan Avalon_XL 3 6 $           26,965 21 29 3,428 Sedan Japan ES_330 3.3 6 $           31,725 20 29 3,460 Sedan Japan Aerio 2.3 4 $           15,199 25 31 2,676 Sedan Japan TSX 2.4 4 $           26,490 22 31 3,318 Sedan Japan Camry_SE 2.4 4 $           20,705 23 32 3,186 Sedan Japan Accord_LX 2.4 4 $           20,100 24 33 3,164 Sedan Japan Sentra 1.8 4 $           14,400 28 36 2,581 Sedan Japan Civic_LX 1.7 4 $           16,160 29 38 2,606 Sedan Japan Corolla_LE 1.8 4 $           14,780 32 40 2,524 Sedan Japan Prius 1.5 4 $           20,295 60 51 2,890 Sedan Japan Legacy_L 2.5 4 $           21,520 22 28 3,400 Wagon Japan Matrix 1.8 4 $           15,470 27 32 2,756 Wagon Japan xB 1.5 4 $           14,480 30 34 2,469 Wagon Japan Sedona_EX 3.5 6 $           22,085 15 20 4,802 Minivan Korea Sonata 2.4 4 $           16,799 22 30 3,217 Sedan Korea Elantra 2 4 $           15,155 26 33 2,606 Sedan Korea XC90_T6 2.9 6 $           40,695 15 20 4,639 SUV Sweden 9-5_Aero 2.3 4 $           39,860 19 28 3,470 Sedan Sweden S40_TS 2.5 5 $           26,990 22 31 3,126 Sedan Sweden V40 1.9 4 $           25,700 22 29 2,822 Wagon Sweden H2_Lux 6 8 $           52,920 11 11 6,400 SUV US Navigator_Ultimate 5.4 8 $           56,140 17 12 6,041 SUV US Escalade 6 8 $           55,110 13 17 5,571 SUV US Espedition_XLT 5.4 8 $           37,475 13 17 5,671 SUV US Explorer_XLT 4.6 8 $           32,605 15 19 4,469 SUV US Mountaineer 4.6 8 $           38,335 14 19 4,523 SUV US Tahoe_SLE 4.8 8 $           37,200 15 19 5,262 SUV US Yukon_SLE 4.8 8 $           37,810 15 19 5,262 SUV US Grand_Cherokee_Freedom 4.7 8 $           33,142 15 20 4,203 SUV US Envoy_XL 4.2 6 $           33,470 15 20 4,968 SUV US Bravada 4.2 6 $           35,870 15 21 4,600 SUV US Trailblazer_LT 4.2 6 $           32,170 15 21 4,616 SUV US Ranier_CXL 4.2 6 $           38,645 15 21 4,628 SUV US Liberty_Sport 2.4 4 $           18,380 19 24 3,648 SUV US Escape_XLS 3 6 $           20,400 19 25 3,181 SUV US VUE 2.2 4 $           19,005 22 28 3,260 SUV US Astro_LS 4.3 6 $           25,230 16 20 4,309 Minivan US Freestar_SE 3.9 6 $           26,390 17 23 4,275 Minivan US Venture_Plus 3.4 6 $           21,475 19 26 3,699 Minivan US Montana_FWD 3.4 6 $           23,335 19 26 3,803 Minivan US Caravan_SE 2.4 4 $           18,330 21 27 3,908 Minivan US Viper 8.3 10 $           81,090 12 21 3,410 Sedan US Grand_Marquis_GS 4.6 8 $           25,520 17 25 3,957 Sedan US Crown_Victoria_LX 4.6 8 $           27,220 17 25 4,057 Sedan US Taurus_SES 3 6 $           21,805 19 26 3,306 Sedan US CTS 3.2 6 $           30,650 19 26 3,509 Sedan US Intrepid_SXT 3.5 6 $           25,105 19 27 3,548 Sedan US Concorde_Lxi 3.5 6 $           26,210 19 27 3,548 Sedan US PT_Cruiser 2.4 4 $           17,490 22 29 3,101 Sedan US LeSabre 3.8 6 $           25,865 20 29 3,567 Sedan US Impala_LS 3.8 6 $           24,685 20 30 3,466 Sedan US Grand_Prix_GT2 3.8 6 $           24,075 20 30 3,484 Sedan US Focus_SE 2 4 $           15,155 26 33 2,606 Sedan US Vibe 1.8 4 $           16,605 29 36 2,700 Wagon US

Explanation / Answer

I have sorted the data by MSRP in descending fashion. the top 10% in these 84 cars, should mean that they should be in top 8.4 or 8 cars

Therefore, the price of top 10% should be the minimum value in the top 10%, which is $56140

Probability that price of car will far below $20,000 is :

= no. of cars priced below $20000 / total cars

= 17/84

=0.2024

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