MGT – 203A- FQ 2020 – Assignment 3

8.6
The amount of time it takes for a student to complete a statistics quiz is uniformly distributed between
30 and 60 minutes. One student is selected at random. Find the probability of the following events.

a. The student requires more than 55 minutes to

complete the quiz.

60−55
P(X>55) =P(X>=55) = = 0.166
60−30
b. The student completes the quiz in a time
between 30 and 40 minutes.

40−30
P (30<X<40) = = 0.33
60−30
c. The student completes the quiz in exactly 37.23 minutes

P(X=37.23) = 0

AS the distribution is continuous, the probability of occurrence of an exact value is zero.

8.28
P (Z > 1.87) = 1-P (Z>1.87) = 1- 0.969258 = 0.03 =NORM.S.DIST (1.87, TRUE)

8.30
P (1.04 < Z < 2.03) = P (Z<2.03) – P (Z<1.04) = 0.127992 =NORM.S.DIST (2.03, TRUE)-NORM.S.DIST (1.04, TRUE)

8.38
X is normally distributed with mean 100 and standard deviation 20. What is the probability that X is
greater than 145?

P(X>145) = 1- P(X<=145) = 1- 0.987776 = 0.0123 =NORM.DIST (145, 100, 20, TRUE)

Or

X−μ 145−100
Z= = = 2.25
σ 20
=NORM.S.DIST (2.25, TRUE)
P (Z>2.25) = 1- P (Z<=2.25) = 1-0.987776 = 0.0123

8.40
X is normally distributed with mean 1,000 and standard deviation 250. What is the probability that X lies
between 800 and 1, 100?

P (800<X<1100) = P(X<1100) – P(X<800) = 0.443566

=NORM.DIST (1100, 1000, 250, TRUE)-NORM.DIST (800, 1000, 250, TRUE)
8.42
The long-distance calls made by the employees of a company are normally distributed with a mean of
6.3 minutes and a standard deviation of 2.2 minutes. Find the probability that a call

a. lasts between 5 and 10 minutes.

=NORM.DIST (10, 6.3, 2.2, TRUE)-NORM.DIST (5, 6.3, 2.2, TRUE)
P (5<X<10) = P(X<10) – P(X>5) = 0.6764

b. lasts more than 7 minutes.

P(X>7) = 1- P(X<7) = 0.3751 =1-NORM.DIST (7, 6.3, 2.2, TRUE)

c. lasts less than 4 minutes.

P(X<4) = 0.147906 =NORM.DIST (4, 6.3, 2.2, TRUE)

8.62
Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills
promptly. However, this is not always possible. An analysis of the amount of interest paid monthly by a
bank’s Visa cardholders reveals that the amount is normally distributed with a mean of $27 and a
standard deviation of $7.

a. What proportion of the bank’s Visa cardholders pay more than $30 in interest?

P(X>30) = 1- P(X<30) = 0.334118 =1-NORM.DIST (30, 27, 7, TRUE)

b. What proportion of the bank’s Visa cardholders pay more than $40 in interest?

P(X>40) = 1- P(X<40) = 0.031645 =1- NORM.DIST (40, 27, 7, TRUE)

c. What proportion of the bank’s Visa cardholders pay less than $15 in interest?

P(X<15) = 0.043238 =NORM.DIST (15, 27, 7, TRUE)

d. What interest payment is exceeded by only 20% of the bank’s Visa cardholders?

Probability of more than 20% = 32.89135 =NORM.INV (0.8, 27, 7)

8.66
Mensa is an organization whose members possess IQs that are in the
top 2% of the population. It is known that IQs are normally distributed
with a mean of 100 and a standard deviation of 16. Find the minimum
IQ needed to be a Mensa member.

P = 1-2% = 0.98
 µ= 100
S.D = 16
So. The IQ needed to be a Mensa member = 132.86 =NORM.INV (0.98, 100, 16)

8.70
The demand for a daily newspaper at a newsstand at a busy intersection is known to be normally
distributed with a mean of 150 and a standard deviation of 25. How many newspapers should the
newsstand operator order to ensure that he runs short on no more than 20% of days?

P (No more than 20 %) = P (0.8)

=NORM.INV (0.8, 150, 25)
µ = 150

S.D = 25

So, the number of newspapers that needed to be ordered = 171.0405