Question

Use Random number generator and simulate 1000 long columns, for each of the three cases. Example: for the Car type 1, use Number of variables=1, Number of random numbers=1000, Distribution=Normal, Mean=520 and Standard deviation=110, and leave random Seed empty. Next: use either sorting to construct the appropriate histogram or rule of thumb to answer the questions: 13. What is approximate probability that Car Type 3 has annual cost less than $550?

Answer 1

Explanation:

The question is incomplete since they do not give information about the Car type 3.

We will do it in a generic way, we will say that the Car type 3 has a mean of M and a standard deviation SD.

We would be:

P (CT3 <550) = P [z <(550 - X) / SD]

Now if we give it values, for example that X = 600 and SD = 120

It would remain:

P (CT3 <550) = P [z <(550 - 600) / 120]

P (CT3 <550) = P [z <-0.42]

We look for this value in the normal distribution table (attached) and it shows us that the probability is approximately 0.3372, that is, 33.72%

What you need to do is replace the X and SD values of theCar type 3 in the equation above how I just did and you will get the result.