Question

Upon studying low bids for shipping contracts, a microcomputer manufacturing company finds that intrastate contracts have low bids that are uniformly distributed between 22 and 29, in units of thousands of dollars. (a) Find the probability that the low bid on the next intrastate shipping contract is below $25,000. (Round your answer to four decimal places.)

Answer 1

Answer:

0.4286 = 42.86% probability that the low bid on the next intrastate shipping contract is below $25,000.

Step-by-step explanation:

A distribution is called uniform if each outcome has the same probability of happening.

The uniform distributon has two bounds, a and b, and the probability of finding a value lower than x is given by:

$P(X < x) = \frac{x - a}{b - a}$

Uniformly distributed between 22 and 29, in units of thousands of dollars.

This means that $a = 22, b = 29$.

(a) Find the probability that the low bid on the next intrastate shipping contract is below $25,000.

This is P(X < 25). So

$P(X < 25) = \frac{25 - 22}{29 - 22} = 0.4286$

0.4286 = 42.86% probability that the low bid on the next intrastate shipping contract is below $25,000.