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Quiz 3 fa 2007 KEY

Quiz 3 fa 2007 KEY - e 82.58 1 f 87.29 4 When a customer...

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ECON 2843 Name KEY Quiz 3 Fall 2007 ID # Students must show all work on problems that involve calculation. Questions 1 and 2 refer to the following. Toby’s Trucking Company determined that the distance traveled per truck per year is normally distributed with a mean of 50,000 miles and a variance of 144,000,000 miles 2 . 1. What is the probability that a randomly selected truck will travel over 39,000 miles per year? .8212 2. What two yearly amounts for annual distance traveled bound the middle 39% of the distribution? 43,880 56,120 3. The breaking strength of plastic bags used for packaging produce is normally distributed with a variance of 2.25 (lbs/sq. inch) 2 If 27 bags are randomly selected, what is the probability that the sample mean will differ from the population mean by more than .33 pounds? a. 12.71 % b. 22.00 % c. 22.50 % d. 25.42 %

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Unformatted text preview: * e. 82.58 % 1 f. 87.29 % 4. When a customer places an order with Rudy’s On-Line Office Supplies, a computerized accounting information system (AIS) automatically checks to see if the customer has exceeded his or her credit limit. Past records indicate that the probability of customers exceeding their credit limit is .05. Suppose that on a given day, 360 orders are placed. What is the probability that between 10 and 20 customers will exceed their credit limit? .6576 5. Refer to question 4. The company receives an extra processing charge of 8 cents for each customer that exceeds his/her credit limit. For the sample in problem 4, what is the probability that total daily processing fee will exceed \$2.00? .0446 (or .0455 is the standard deviation is not rounded to the nearest cent) 2...
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