The owner of a small business buys coats for $60 each. He sells the coat for $72.00 each. What percent of the purchase price is
2 answers:
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Answer:
a) 48.80% probability that his travel time to work is less than 30 minutes
b) The mean is 30.7 minutes and the standard deviation is of 3.83 minutes.
c) 13.13% probability that in a random sample of 36 NJ workers commuting to work, the mean travel time to work is above 35 minutes
Step-by-step explanation:
To solve this question, we need to understand the normal probability distribution and the central limit theorem.
Normal probability distribution
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.
Central Limit Theorem
The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean and standard deviation
, the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean
and standard deviation
.
For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.
In this question, we have that:
a. If a worker is selected at random, what is the probability that his travel time to work is less than 30 minutes?
This is the pvlaue of Z when X = 30. So
has a pvalue of 0.4880.
48.80% probability that his travel time to work is less than 30 minutes
b. Specify the mean and the standard deviation of the sampling distribution of the sample means, for samples of size 36.
Applying the Central Limit Theorem, the mean is 30.7 minutes and the standard deviation is
c. What is the probability that in a random sample of 36 NJ workers commuting to work, the mean travel time to work is above 35 minutes?
This is 1 subtracted by the pvalue of Z when X = 35. So
By the Central Limit Theorem
has a pvalue of 0.8687
1 - 0.8687 = 0.1313
13.13% probability that in a random sample of 36 NJ workers commuting to work, the mean travel time to work is above 35 minutes
16.2 is the answer