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7.2.51-T Question Help The time required for an automotive center to complete an

ID: 3372204 • Letter: 7

Question

7.2.51-T Question Help The time required for an automotive center to complete an oil change service on an automobile approximately follows a normal distribution, with a mean of 17 minutes and a standard deviation of 3 minutes (a) The automotive center guarantees customers that the service will take no longer than 20 minutes. If it does take longer, the customer will receive the service for half-price. What percent of customers receive the service for half-price? (b) If the automotive center does not want to give the discount to more than 5% of its customers, how long should it make the guaranteed time limit? (a) The percent of customers that receive the service for half-price is Round to two decimal places as needed.)

Explanation / Answer

a) Percent of customers that receive the service for half - price

= P(X > 20)

= P(z > (20 - 17)/3)

= P(z > 1)

= 15.87%

b) z score for top 5% of the area = 1.645

Hence,

Guaranteed time limit = 17 + 1.645*3 = 21.94 = 22 minutes

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