The distribution of the fuel consumption can be considered to have a normal distribution with mean μ=278 mpg and standard deviation σ= 5.2 mpg.
You have to determine within what range of fuel consumption you find 99.7% of the automobiles of the market.
First, let's draw a sketch under the normal distribution to visualize the lower and upper limits of the range to determine:
In the normal curve, the green shaded area between the values I named x₁ and x₂ represents 99.7% of the distribution. The remaining 0.3% is in the little tails found below x₁ and above x₂.
You can express this shaded area as a probability, where X represents the variable of interest:
To determine this interval, you have to determine the difference between the accumulated probability up to x₂ and the accumulated probability up to x₁, so that:
The probability accumulated until the lowest limit of the interval, x₁, is represented by the left tail shown in the image, so that:
And the probability accumulated until the highest limit of the interval, x₂, is equal to the area under the curve until that value, that is the sum of 0.0015 and 0.997:
Knowing the accumulated probabilities for both limits of the interval, you can use the standard normal distribution to determine them.
The standard normal distribution is defined as follows:
Under the standard normal distribution, both values will accumulate the same probability, using these values of probability you can determine the z values and then reverse the standardization to "translate" the said Z-values to values of the variable:
Value of x₁
Under the standard normal distribution:
The value under the standard normal distribution that has an accumulated probability of 0.0015 is z₁=-2.97
Using the formula of the standard normal distribution we can translate this value to a value of the variable:
Write the expression for x₁:
For μ=278 and σ= 5.2 mpg:
The lower value of the interval is x₁=262.56 mpg
Value of x₂
Under the standard normal distribution, this value also accumulates the same probability as under the normal distribution, so that:
Using the distribution entry, you can determine the corresponding Z-value.
The value under the standard normal distribution that accumulates 0.9985 of probability is z₂= 2.97
Use the standard normal distribution to determine the value of x₂:
Write the expression for x₂
For μ=278 and σ= 5.2 mpg:
The upper value of the interval is x₂=293.44 mpg
99.7% of the automobiles are expected to be between the fuel consumption values of 262.56mpg and 293.44 mpg, you can express this symbolically as: