ward Doering Auto Sales is considering offering a special service contract that will coverthe total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed,with a mean of $150 and a standard deviation of $25.a. If the company offers the service contract to customers for a yearly charge of $200, whatis the probability that any one customer’s service costs will exceed the contract price of$200?b. what is ward’s expected profit per service contract?
ward Doering Auto Sales is considering offering a special service contract that will coverthe total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed,with a mean of $150 and a standard deviation of $25.a. If the company offers the service contract to customers for a yearly charge of $200, whatis the probability that any one customer’s service costs will exceed the contract price of$200?b. what is ward’s expected profit per service contract?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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ward Doering Auto Sales is considering offering a special service contract that will cover
the total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately
with a mean of $150 and a standard deviation of $25.
a. If the company offers the service contract to customers for a yearly charge of $200, what
is the probability that any one customer’s service costs will exceed the contract price of
$200?
b. what is ward’s expected profit per service contract?
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