An insurance company sets up a statistical test with a null hypothesis that the average time for processing a claim is 7 days, a
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Answer:
52.74% probability that a randomly selected airfare between these two cities will be between $325 and $425
Step-by-step explanation:
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
In this question, we have that:
What is the probability that a randomly selected airfare between these two cities will be between $325 and $425?
This is the pvalue of Z when X = 425 subtracted by the pvalue of Z when X = 325. So
X = 425
has a pvalue of 0.7088
X = 325
has a pvalue of 0.1814
0.7088 - 0.1814 = 0.5274
52.74% probability that a randomly selected airfare between these two cities will be between $325 and $425