SOLUTION: Most four-year automobile leases allow up to 77,000 miles. If the lessee goes beyond this amount, a penalty of 20 cents per mile is added to the lease cost. Suppose the distributio

Algebra ->  Probability-and-statistics -> SOLUTION: Most four-year automobile leases allow up to 77,000 miles. If the lessee goes beyond this amount, a penalty of 20 cents per mile is added to the lease cost. Suppose the distributio      Log On


   

Question 663679: Most four-year automobile leases allow up to 77,000 miles. If the lessee goes beyond this amount, a penalty of 20 cents per mile is added to the lease cost. Suppose the distribution of miles driven on four-year leases follow the normal distribution. The mean is 65,000 miles and the standard deviation is 5,000 miles.
What percent of the leases will yield a penalty because of excess mileage?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

μ = 65000  σ = 5000

P(x > 7700) = 1+-+P%28z+%3C=%2877000-65000%29%2F5000%29 = 1-P(2.4)= 1 - .9918 = .0082 0r .82%



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