 # The American Automobile Association (AAA) reported that families planning to travel over the Labor Day weekend would spend an average of $749 (The Associated Press, August 12, 2012). Assume that the amount spent is normally distributed with a standard deviation of$225. a. What is the probability of family expenses for the weekend being less that $400? b. What is the probability of family expenses for the weekend being$800 or more? c. What is the probability that family expenses for the weekend will be between $500 and$1000? d. What would the Labor Day weekend expenses have to be for the 5% of the families with the most expensive travel plans? 13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884 13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884

#### Solutions

Chapter
Section
Chapter 6.2, Problem 24E
Textbook Problem
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## The American Automobile Association (AAA) reported that families planning to travel over the Labor Day weekend would spend an average of $749 (The Associated Press, August 12, 2012). Assume that the amount spent is normally distributed with a standard deviation of$225. a. What is the probability of family expenses for the weekend being less that $400? b. What is the probability of family expenses for the weekend being$800 or more? c. What is the probability that family expenses for the weekend will be between $500 and$1000? d. What would the Labor Day weekend expenses have to be for the 5% of the families with the most expensive travel plans?

Expert Solution

a.

To determine

Find the probability of family expenses less than $400 in weekend. ### Explanation of Solution Calculation: The amount spent in travel on the Labor Day weekend is normally distributed with mean cost of$749 and standard deviation of $225. The probability of family expenses less than$400 in weekend is,

P(x<400).

Software Procedure:

Step-by-step procedure to obtain the probability value using the MINITAB software:

• Choose Calc > Probability Distributions > Binomial Distribution.
• Choose Cumulative probability.
• Enter Mean as 749 and Standard deviation as 225
Expert Solution

b.

To determine

Find the probability of family expenses more than $800 in weekend. Expert Solution c. To determine Find the probability of family expenses between$500 and \$1,000 in weekend.

Expert Solution

d.

To determine

Find the Labor Day expenses for 5% families with most expensive travel plans.

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