Elementary Statistics: A Step-by-Step Approach with Formula Card 9th Edition

Published by McGraw-Hill Education
ISBN 10: 0078136334
ISBN 13: 978-0-07813-633-7

Chapter 6 - The Normal Distribution - 6-2 Applications of the Normal Distribution - Exercises 6-2 - Page 339: 23

Answer

$9222$ and $7290$

Work Step by Step

We have $\mu=8256,\sigma=1150$. To appeal to the middle 60% of the market, the left tail probability would be $P(z1)=0.5-0.6/2=0.2$ and for the maximum $P(z2)=0.5+0.6/2=0.8$. Use Table E, we find $z1=-0.844,z2=0.844$ The maximum $X2$ and minimum $(X2)$ prices can be found using $z2=\frac{X2-8256}{1150}=0.84, X2=9222$ and $z1=\frac{X1-8256}{1150}=-0.84, X1=7290$
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