Question

Two companies, A and B, drill wells in a rural area. Company A charges a flat fee of 3681 dollars to drill a well regardless of its depth. Company B charges 1168 dollars plus 10 dollars per foot to drill a well. The depths of wells drilled in this area have a normal distribution with a mean of 260 feet and a standard deviation of 40 feet. Find the probability that Company B would charge more than Company A to drill a well.

Answer 1

Answer:

Mean costing =  $3,768

Step-by-step explanation:

Given:

Mean A(x) = 260

Rate = $10 per feet

Fixed charge = $1,168

Computation:

Assume;

depth = x ft

So,

Cost of company B = 10x + 1,168

So,

Mean costing = 10A(x) + 1,168

Mean costing =  10(260) + 1,168

Mean costing =  2,600 + 1,168

Mean costing =  $3,768