Excel Worksheet 3-Math 243 Spring 2017 (Total: 24 points) Instructions: Read thi

Question

Excel Worksheet 3-Math 243 Spring 2017 (Total: 24 points) Instructions: Read this very carefully. In one Excel file create two sheets. Label one sheet "Prob- lem 1" and label the second sheet Problem 2." Your solutions to the two problems should be recorded on the corresponding sheet. Additionally, you should clearly label each part of the prob- lems with (a), (b), etc., and every computation should be labeled. For example, in the cell next to the mean of the data, you should have typed the word mean or average. Be to do computations using Excel. Do not do computations using Table A or on a calculator and then answers into Excel. 1. Cheap-As-Dirt Rental Company advertises that the average cost of a rental they find for undergraduate students at the University of Oregon is $540 with a standard deviation of $75 (Let us assume the rents are approximately Normally distributed.) The Department of Consumer Protection will investigate the company if, when they choose a sample of students, they find that the average rental cost for those students is $610 or more. (a) (4 points) Assuming that the company is advertising truthfully, what is the probability that the company will be investigated if the Department of Consumer Protection only samples one client? (b) (4 points) Assuming that the company is advertising truthfully what is probability that the company will be investigated if the Department of Consumer Protection samples 10 clients? (c) (4 points) Assuming that the company is advertising truthfully, what is the probability that the company will be investigated if the Department ofConsumer Protection samples 2. In New York City in the late 1970s and early 1980s, parking meter collections averaged s1.75 million per month with a standard deviation of $302 thousand per month. Assume that the amount generated per month is Normal with the mean and standard deviation from the previous sentence. For about two years the city hired Brink's Inc. to do collections instead. The data file gives the collections that Brink's reported to the city during that period. (a) (2 points) What is the sample size for this data? (b) (4 points) What is the sample mean? (c) (6 points) The city was concerned that Brink's was stealing money from the parking meter receipts. Assume that this sample of months is like a random sample. Given your answers to the first two parts, what is the probability of a sample at least as far below the mean as the sample from the period of the Brink's contract?

Explanation / Answer

Answer to question # 1)

.

For part a)

We find the vlaue of Z using the formula

=(610-540)/(75/sqrt(1))

We get Z = 0.9333

.

Now we need to find the probability of greater than 610

So the excel formula to find the probability is

=1-normsdist(0.9333)

We get P(x>610) = 0.17533

Thus the probability of getting rental above $610 is 0.17533

.

Answer to part b)

This time the sample size is 10

So the formula of Z is :

=(610-540)/(75/sqrt(10))

We get Z = 2.95

.
We need to find Probability of greater than 610

So the formula for excel is :

=1-normsdist(2.95)

We get 0.001589

.

Answer to part c)

This time the sample size is 50

So the formula of Z is :

=(610-540)/(75/sqrt(50))

We get Z = 6.60

.
We need to find Probability of greater than 610

So the formula for excel is :

=1-normsdist(6.60)

We get 0.00000

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