Question

If the monthly electrical utility bills of all customers for the Far East Power and Light Company are known to be distributed as a normal distribution with mean equal to $87.00 a month and standard deviation of $36.00, which of the following would be the largest individual customer bill that you might expect to find?A) About $195.00B) Approximately $811.00C) Nearly $123.00D) There is no way to determine this without more information

Answer 1

A) About $195.00

Explanation:

In a normal distribution, the interval (mean - 3*standard deviation, mean + 3*standard deviation) account for about 99.7% of the values. In this case mean + 3*standard deviation = $87.00 + 3*$36.00 = $195.00. So, it 's expected that this amount of money would be the largest individual customer bill.