Question

5) 1

4) The prices of various cereal boxes is normally
distributed with a standard deviation of 0.5. If a
box of Lucky Charms sells for $4.29 and has a z-
score of 1.6, what is the mean price of a box of
cereal?

Answer 1

$3.49

Explanation:

-The z value is calculated by the formula:

`z=(\bar x -\mu)/(\sigma)`

Where
`\mu, \sigma` are the mean and standard deviation respectively and
`\bar x` is the price of the random selection.

#We substitute and solve for
`\mu`:

`z=(\bar x -\mu)/(\sigma)\\\\1.6=(4.29-\mu)/(0.5)\\\\0.8=4.29-\mu\\\\\mu=3.49`

Hence, the mean price of a box of cereal is $3.49