The mean cost of domestic airfares in the United States rose to an all-time high of $375 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $105. Use Table 1 in Appendix B. a. What is the probability that a domestic airfare is $530 or more (to 4 decimals)? b. What is the probability that a domestic airfare is $265 or less (to 4 decimals)? c. What if the probability that a domestic airfare is between $320 and $510 (to 4 decimals)

The mean cost of domestic airfares in the United States rose to an all-time high of $375 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $105. Use Table 1 in Appendix B. a. What is the probability that a domestic airfare is $530 or more (to 4 decimals)? b. What is the probability that a domestic airfare is $265 or less (to 4 decimals)? c. What if the probability that a domestic airfare is between $320 and $510 (to 4 decimals)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 7MC

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The mean cost of domestic airfares in the United States rose to an all-time high of $395 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $115. Use Table 1 in Appendix B. a. What is the probability that a domestic airfare is $540 or more (to 4 decimals)? b. What is the probability that a domestic airfare is $240 or less (to 4 decimals)? c. What if the probability that a domestic airfare is between $300 and $490 (to 4 decimals)? d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)
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