D. what is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)

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02-11-2017
Business

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D. what is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)

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W0lf93 W0lf93 · Answer 1 · 2017-11-12T17:22:55+01:00

W0lf93 W0lf93

12-11-2017

Assuming a standard deviation of $110 and normal distribution for domestic airfare, and a mean cost of $385, P ( Z > x ) = 0.03 Value of z to the cumulative probability of 0.03 from normal table is 1.88 P( x-u/ (s.d) > x - 385/110) = 0.03 That is, ( x - 385/110) = 1.88 --> x = 1.88 * 110+385 = 591.91

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