Question 663557
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?
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z(77000) = (77000-65000)/5000 = 12/5 = 2.4
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P(milage > 77000) = P(z > 2.4) = normalcdf(2.4,100) = 0.0082
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Cheers,
Stan H.