Question

Suppose the dealer incentive per vehicle for honda's acura brand in 2012 is thought to be bell-shaped and symmetrical with a mean of $2500 anda standard deviation of $300. Based in this information,
what interval of dealer incentives would we expect approximately 99.7% of vehicles to fall within?

Answer 1

Answer:

From $1600 to $3400.

Step-by-step explanation:

The Empirical Rule states that, for a normally distributed random variable:

68% of the measures are within 1 standard deviation of the mean.

95% of the measures are within 2 standard deviation of the mean.

99.7% of the measures are within 3 standard deviations of the mean.

In this problem, we have that:

Mean = 2500

Standard deviation = 300

What interval of dealer incentives would we expect approximately 99.7% of vehicles to fall within?

By the Empirical Rule, 99.7% fall within 3 standard deviations frow the mean. So

From 2500 - 3*300 = 1600 to 2500 + 3*300 = 3400.