Assume the cost of an extended? 100,000 mile warranty for a particular SUV follo

Question

Assume the cost of an extended? 100,000 mile warranty for a particular SUV follows the normal distribution with a mean of ?$1,440 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 ?$_ to ?$_.

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

The interval of warranty costs that are two standard deviations around the mean ranges from $_ to ?$_.

?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 deviations around the mean ranges from $_ to $_.

?d) An extended? 100,000 mile warranty for this type of vehicle is advertised at $1,740. Based on the previous? results, what conclusions can you? make?

Explanation / Answer

Solution:- Given that mean = $1,440, standard deviation = $75

a) mean +/- sd = 1440 +/- 75 = (1365 , 1515)

b) mean +/- 2sd = 1440 +/- 2*75 = (1290 , 1590)

c) mean +/- 3sd = 1440 +/- 3*75 = (1215 , 1665)

d) The $1740 cost of this warranty is much higher than average does to the fact that it is more than three standard deviation above the mean

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.