Question

A recent study indicated that the average cost of living for a family of four in various cities across the US was $65,351 with a standard deviation of $7712. A company is thinking about relocating to a city with a lower cost of living. They would like to choose a city in the bottom 30% of those surveyed. What is the cutoff for the cost of living that would make a city eligible for relocation by this company

Answer 1

The correct answer is "57408".

Explanation:

Given:

`\mu=65351`

`\sigma=7712`

`p=0.15`

As per the standard table, we know,

`z=-1.03`

Now,

⇒
`z=(x-\mu)/(\sigma)`

By putting the values, we get

`-1.03=(x-65351)/(7712)`

`x=57407.64`

or,

`=57408`