Question

An ethanol railroad tariff is a fee charge for shipments of ethanol on public railroads. The Agriculture Marketing Service publishes tariff rates for railroad-car shipments of ethanol in the Biofuel Transportation Database. Assuming that the standard deviation of such tariff rates is $1150, determine the probability that the mean tariff rate of 500 randomly selected railroad-car shipments of ethanol will be within $100 of the mean tariff rate of all railroad-car shipments of ethanol.

Answer 1

Answer:

The appropriate response is "0.9476".

Step-by-step explanation:

The given values are:

Standard deviation,

$\sigma=1150$

Randomly selected railroad-car shipments,

n = 500

As we know,

⇒ $\sigma \bar{x}=\frac{\sigma}{\sqrt{n} }$

On substituting the values, we get

⇒      $=\frac{1150}{\sqrt{500} }$

then,

⇒      $=P(-1.94$

⇒      $=P(Z$

On using the table of P, we get

⇒      $=0.9738 - 0.0262$

⇒      $=0.9476$