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ASBE 5e Solutions for Instructors

Applied Statistics in Business and


Economics 5th Edition Doane Seward
0077837304 9780077837303
Download solution manual at:
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in-business-and-economics-5th-edition-doane-seward-
0077837304-9780077837303/

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9780077837303/

Chapter 7
Continuous Distributions
Calculations are done on Excel except where noted that Appendix Tables are used.
Probabilities are rounded to four decimals. Z scores are typically rounded to two
decimals when using Appendix tables and to no more than four decimals when using
Excel.

7.1 a. Discrete. We can count the number of passengers with children.


b. Continuous. A proportion can be anything between 0 and 1 inclusive.
c. Continuous. Weight can take on fractional values.
Learning Objective: 07-1

7.2 a. Continuous. Temperature can take on fractional values.


b. Discrete. We can count the number who order only coffee.
c. Continuous. Time can take on fractional values.
Learning Objective: 07-1

7.3 In order to be a valid PDF, total area under f(x) must equal 1.
a. Area = .25(1) = .25 therefore this is not a PDF.
b. This is a valid PDF. Area = 4(.25) = 1.
c. Area = ½(2)(2) = 2 therefore this is not a PDF.
Learning Objective: 07-1

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ASBE 5e Solutions for Instructors

7.4 For a continuous PDF, we use the area under the curve to measure the probability. The area
above a single point is defined to be zero so if we summed up all the point probabilities
we would have a sum equal to zero. In addition, by definition there are an infinite
number of points in the interval over which a continuous random variable is defined.
This is why we take an integral, rather than summing.
Learning Objective: 07-1

(10 − 0) 2
7.5 a. = (0+10)/2 =5 = = 2.8868
12

(200 − 100) 2
b. = (200+100)/2 = 150 = = 28.8675
12

(99 − 1) 2
c. = (1+99)/2= 50 = = 28.2902
12
Learning Objective: 07-2

x−a
7.6 a. Use the CDF: P(X ≤ x) = . P(X < 10) for U(0,50) = (10-0)/(50-0) = 0.2
b−a

b− x
b. Use P(X > x) = . P(X > 500) for U(0,1000) = (1000-500)/(1000-0) = 0.5
b−a

d −c
c. Use P(c ≤ X ≤ d) = . (25 < X < 45) for U(15,65) = (45-25)/(65-15) = .4
b−a

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ASBE 5e Solutions for Instructors

Learning Objective: 07-2

7.7 P(X=25) = 0 and P(X=45) = 0 for a continuous uniform distribution. Therefore using a <
or ≤ yields the same result.
Learning Objective: 07-2

a+b
7.8 a. The equation is: .  = (2500+4500)/2 = 3500
2
(b − a) 2 (4500 − 2500)2
b. The equation is: . = = 577.3503
12 12
c. P(X < 3000) = (3000-2500)/(4500-2500) =0.25.
d. P(X > 4000) = (4500-4000)/(4500-2500) = 0.25.
e. P(3000< X < 4000) = (4000-3000)/(4500-2500) =0.50.
Learning Objective: 07-2

7.9 The curves differ by their mean, standard deviation, and height.
Learning Objective: 07-3

7.10 a. The maximum height of a normal distribution is the mean. In this case, the maximum
height is at x = 75.
b. No, f(x) does not touch the X axis at any point. The distribution is asymptotic to the X
axis.
Learning Objective: 07-3

7.11 The Empirical Rule states that for data from a normal distribution we expect
about 68.26% will lie within  ± 1 
about 95.44% will lie within  ± 2 
about 99.73% will lie within  ± 3 
Learning Objective: 07-3

7.12 a. Yes. Most sizes tend toward the same value with equal percentages above and below this
value.
b. No, distribution could be skewed. Most likely the distribution is skewed right. Most 30
year old women have a high school degree with some women having several years of
higher education and a few women having advanced degrees which might be six or
more years of higher education.

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ASBE 5e Solutions for Instructors

c. No, distribution could be skewed right. Most bill payments will be delivered within a
week but there may be a few that take much longer.
d. No, distribution could be skewed right. Most insurance claims can be settled in about the
same amount of time but some will take much longer.
Learning Objective: 07-3

7.13 These values were found using Appendix C-1.


a. P(0 < Z < .50) = .1915.
b. Due to symmetry : P(−.50 < Z < 0) = P(0 < Z < .50) = .1915.
c. Because 0 is the mean of the standard normal distribution P(Z > 0) = .5000.
d. Because the standard normal is a continuous distribution P(Z = 0) = 0.
Learning Objective: 07-4

7.14 These values were found using Appendix C-2.


a. P(1.22 < Z < 2.15) = P(Z < 2.15) – P(Z < 1.22) = .9842 − .8888 = .0954
b. P(2.00 < Z < 3.00) = P(Z < 3.00) – P(Z < 2.00) = .99865 − .9772 = .0215
c. P(−2.00 < Z < 2.00) = (Z < 2.00) – P(Z < −2.00) = .9772 − .0228 = .9544
d. P(Z > .50) = 1 – P(Z < .50) = 1 − .6915 = .3085
Learning Objective: 07-4

7.15 These values were found using Appendix C-2.


a. P(−1.22 < Z < 2.15) = P(Z < 2.15) – P(Z < −1.22) = .9842 − .1112 = .8730
b. P(−3.00 < Z < 2.00) = P(Z < 2.00) – P(Z < −3.00) = .9772 − .00135 = .9759
c. P(Z < 2.00) = .9772
d. Because the standard normal is a continuous distribution P(Z = 0) = 0.
Learning Objective: 07-4

7.16 a. Using the table in Appendix C-2, P( Z  −1.96) = .0250

b. Using the table in Appendix C-2: P( Z  1.96) = 1 − P( Z  1.96) = 1–.9750 = .0250. We


also know that the area under the curve for the lower tail at −1.96 will be the same as
the area under the curve for the upper tail at +1.96 so we could have just used part a to
get the answer.
c. Using the table in Appendix C-2: P( Z  1.65) = .9505
d. Using the table in Appendix C-2: P(Z > −1.65) = 1–P(Z < −1.65) = 1–.0495 = .9505.
Learning Objective: 07-4

7.17 Using the table in Appendix C-2:


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ASBE 5e Solutions for Instructors

a. P(Z < −1.28) = .1003


b. P(Z > 1.28) = 1 − P(Z < 1.28) = 1 − .8997 = .1003
c. P(−1.96 < Z < 1.96) = P(Z < 1.96) − P(Z < −1.96) = .975 − .025 = .95
d. P(−1.65 < Z < 1.65) = P(Z < 1.65) − P(Z < −1.65) = .9505 − .0485 = .902
Learning Objective: 07-4

7.18 The proportion of students scoring higher than Bob is the area under the standard normal to
the right of 2.17 or P(Z > 2.17). Using the table in Appendix C-2 : P(Z > 2.17) = 1 −
P(Z < 2.17) = 1 − .9850 = .0150. 1.5% of the 200 students, or .015×200 = 3 students,
scored higher than Bob.
Learning Objective: 07-4

7.19 If Joan ran 1.75 standard deviations faster than the other women in her age group then she
was 1.75 standard deviations below the average time. The proportion of women who
ran faster than Joan is the area under the standard normal curve to the left of 1.75 or
P(Z < −1.75). Using the table in Appendix C-2: P(Z < −1.75) = .0401 or 4.01%.
.0401×405 = 16.24. About 16 women ran faster than Joan.
Learning Objective: 07-4

7.20 a. If we use Appendix C-2 to find the z-score associated with a given area we want to look
inside the body of the table first instead of the far left column. To find the z-score
associated with the highest 10%: the table gives areas less than z so we use .90 as our
probability. The value closest to .90 in table C-2 is .8997. Reading to the left and up we
find z = 1.28. The exact value from Excel can be found using =NORM.S.INV(.90) =
1.2816.
b. Search for the area .50 in the body of the table in Appendix C-2. The z-score associated
with this area is 0. This makes sense because we know the standardized normal
distribution has mean = 0 and it is symmetric so half is above zero and half is below
zero.
c. The highest 7% is the same as the lowest 93%. Using Appendix C-2, search for the
value closest to .93. The value closest is .9306 and its z-score is 1.48. The exact value
from Excel using =NORM.S.INV(.93) is 1.4758.
Learning Objective: 07-5

7.21 Using Appendix C-2:


a. Searching for the area closest to .06 we find both the area .06 is halfway between .0606
and .0594. We would choose z = −1.555. From Excel using = NORM.S.INV(.06), z =
−1.5488.
b. Searching for the area closest to .60 we find .5987. The z-score = 0.25. From Excel using
=NORM.S.INV(.60), z = .2533.
c. Searching for the area closest to .07 we find .0694. The z-score = −1.48. From Excel
using =NORM.S.INV(.07), z = −1.4758.
Learning Objective: 07-5

7.22 a. We are looking for z-scores associated with the middle 50%. Because the curve is
symmetric this translates into an area of .25 below and .25 above. We want the z-scores

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associated with the lower .25 tail and the upper .25 tail. From Appendix C-2, the
approximate z- score associated with a lower tail of .25 is −.67. The corresponding z-
score for the upper .25 tail is +.67. From Excel using =NORM.S.INV(.25), z = −.6745.
To find the upper z-score use =NORM.S.INV(.75) = .6745.
b. The z-score associated with a lower tail area of .05 is −1.645. Using Excel:
=NORM.S.INV(.05) = −1.6449.
c. The middle 90% means the lower tail area is .05 and the upper tail area is .05. From part
c and using the symmetry of the normal curve, the z-scores are −1.645 and +1.645.
Using Excel: =NORM.S.INV(.05) = −1.6449 and =NORM.S.INV(.95) = 1.6449.
Learning Objective: 07-5

7.23 Using Appendix C-2:


a. The middle 60% means the lower tail area is .20 and the upper tail area is .20. The area
in Appendix C-2 closest to .20 is .2005 resulting in a z score = −0.84. For the upper tail
the z-score = +0.84 Using Excel: =NORM.S.INV(.20) = −0.8416 and
=NORM.S.INV(.80) = 0.8416.
b. he highest 2% means the area to the left is .98. Using Appendix C-2, the area closest to
.98 is .9798 which results in a z-score = 2.05. Using Excel =NORM.S.INV(.98) gives z
= 2.0537.
c. The middle 95% means the lower tail area is .025 and the upper tail area is .025. From
Appendix C-2, the area .025 is associated with a z-score −1.96. The z-score for the
upper tail is +1.96. Using Excel: =NORM.S.INV(.025) = −1.95996 and
=NORM.S.INV(.975) = 1.95996.
Learning Objective: 07-5

7.24 The z score associated with the highest 20 percent is found using =NORM.S.INV(.80) =
0.8416. The students who score in the top 20 percent score approximately 0.84 standard
deviations above the mean score.
Learning Objective: 07-5

7.25 The z score associated with the fastest 10 percent is found using =NORM.S.INV(.10) =
−1.28. The runners must finish 1.28 standard deviations below the mean to win a gift
certificate.
Learning Objective: 07-5

7.26 a. P( X  232,000) = 1– P( X  232,000) = 1–NORM.DIST(232000,232000,7000,1) = 1–


232000 − 232000
.50=.50. We can also use the standardized z score: z = =0.
7000
P( X  232,000) = P( Z  0) = .5 so P( X  232,000) = 1–.5 = .5.
b. P( X  239,000) − P( X  232,000) = NORM.DIST(239000,232000,7000,1) –
NORM.DIST(232000,232000,7000,1) = .8413–.5 = .3413. We can also use the
239000 − 232000 232000 − 232000
standardized z-score: z = = 1 and z = =0.
7000 7000
P(232,000 < X < 239,000) = P(0 < Z < 1) which is .3413 (from Appendix C-1).

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ASBE 5e Solutions for Instructors

c. P( X  239,000) =NORM.DIST(239000,232000,7000,1) = .8413. We can also use the


239000 − 232000
standardized z-score: z = = 1 . P( Z  1) = .8413 (from Appendix C-
7000
2).
d. P( X  245,000) = NORM.DIST(245000,232000,7000,1) = .9684. We can also use the
245000 − 232000
standardized z-score: z = = 1.86 . P( Z  1.86) = .9686 (from
7000
Appendix C-2).
e. P(X > 225,000) = 1– P( X  225,000) = 1 – NORM.DIST(225000,232000,7000,1) = 1–
225000 − 232000
.1587 = .8413. We can also use the standardized z-score: z = = −1 .
7000
1 − P( Z  −1) = .8413.
Learning Objective: 07-4

7.27 a. P(X < 300) = NORM.DIST(300,290,14,1) = 0.7625


b. P(X > 250) = 1 − P(X > 250) = 1 – NORM.DIST(250,290,14,1) = 0.9979
c. P(275 < X < 310) =NORM.DIST(310,290,14,1)-NORMDIST(275,290,14,1) = 0.7814
Learning Objective: 07-4

7.28 a. Using the Empirical Rule we know that approximately 95% of all observations will be
within 2 standard deviations of the mean. The approximate range is 3.3 ± 2×0.13 or
(3.04, 3.56).
b. P( X  3.5) = 1 − P( X  3.5) . 1–NORMDIST(3.5,3.3,.13,TRUE) = 1–.9380 = 0.062.
3.5 − 3.3
We can also use the standardized z-score: z = = 1.54 . P( Z  1.54) = .9382.
.13
P(Z > 1.54) = 1–.9382 = .0618.
Learning Objective: 07-4

24 − 19.2
7.29 If solving using a hand held calculator and Appendix C-2: P(X > 24) = P(Z > )=
2.5
P(Z > 1.92) = 1 − P(Z < 1.92) = 1 − .9726 = .0274.
When using Excel: P(X > 24) =1-NORM.DIST(24,19.2,2.5,1) = .0274.
Learning Objective: 07-4

7.30 I want to know the probability of getting a business traveler that is taller than 5' 9". To
make it easier we can convert everything to inches and use a mean of 70 inches and use
69 inches instead of 5'9". P( X  69) = 1 − P( X  69) = 1–NORM.DIST(69,70,2.7, 1)
69 − 70
= .6444. We can also use the standardized z-score: z = = −.37 . P( Z  −.37) =
2.7
.3557. P(Z > −.37) = 1–.3557 = .6443.
Learning Objective: 07-4

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ASBE 5e Solutions for Instructors

.5 − .48
7.31 Find P(X >.5) = P(Z > ) = P(Z > 2.5) =1 − P(Z < 2.5) =1-NORM.S.DIST(2.5,1) =
.008
.0062. 6.2% of BigBash bats will exceed the new standard.
Alternatively one could use the Excel function =1-NORM.DIST(.5,.48,.008,1) = .0062.
Learning Objective: 07-4

4200 − 3456
7.32 Find P(X < $4200) = P(Z < ) = P(Z < 1.56) =NORM.S.DIST(1.56,1) = .9406.
478
94% of merit scholarship students will not receive enough to cover their full tuition.
Alternatively one could use the Excel function =1-NORM.DIST(4200,3456,478,1) =
.9402. (The difference is due to the rounding of the z score to 1.56.)
Learning Objective: 07-4

7.33 Use Excel’s NORM.INV(probability, µ,σ) function to find the X value associated with the
cumulative probability.
a. P(X > x) = .1. Highest 10% is the lowest 90%:, x =NORM.INV(.9,10,3) =13.84 min.
b. P(xL < X < xU) = .50. Middle 50% means 25% below the shortest time and 25% above
the longest time. Shortest time: =NORM.INV(.25,10,3) = 7.98 min. Longest time:
=NORM.INV(.75,10,3) = 12.02 min.
c. P(X > x) = .80. Highest 80% is the lowest 20%: x =NORM.INV(.2,10,3) = 7.48 min.
d. P(X < x) = .10. Lowest 10%: x =NORM.INV(.1,10,3) = 6.16 min.
Learning Objective: 07-5

7.34 Use Excel’s NORM.INV(probability, µ,σ) function to find the X value associated with the
cumulative probability.
a. P(X > x) = .05. Highest 5% is the lowest 95%., x =NORM.INV(.95,12,2) = 15.29 min.
b. P(X > x) = .50. Lowest 50%: x =NORM.INV(.5,12,2) = 12 min.,
c. P(xL < X < xU) = .95. Middle 95% means 2.5% below the shortest time and 2.5% above
the longest time. Shortest time: =NORM.INV(.025,12,2) = 8.08 min. Longest time:
=NORM.INV(.975,12,2) = 15.92 min.
d. P(X < x) = .80. Lowest 80%: =NORM.INV(.80,12,2) = 13.68 min.
Learning Objective: 07-5

7.35 Use Excel’s NORM.INV(probability, 114, 7) or NORM.S.INV(probability) function to


find the X or Z value associated with the cumulative probability.
x − 114
a. P(X > x) = .05, z =NORM.S.INV(.95) = 1.645, 1.645 = , x = 124.52 oz.
7
x − 114
b. P(X < x) = .50, z =NORM.S.INV(.5) = 0, 0= , x = 114 oz.
7
x − 114
c. P(xL < X < xU) = .95, z = NORM.S.INV (.025) = 1.96, −1.96 = L , xL = 100.28 oz.,
7
x − 114
1.96 = U , xU = 127.72 oz. 95% of weights will fall between 100.28 and 127.72 oz.
7
x − 114
d. P(X < x) = .80, z =NORM.S.INV(.80) = .842, 0.842 = , x = 119.89 oz.
7
Learning Objective: 07-5

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ASBE 5e Solutions for Instructors

7.36 Use Excel’s NORM.INV(probability, µ,σ) function to get the X value associated with the
cumulative probability. We can also obtain X values using the standardized z-score
formula and Appendix C, as illustrated in parts a, c, and d.
a. P(X > x) = .10. Highest 10% is also the lowest 90%: x =NORM.INV(.9,360,9) =
371.53g. We can also find the z-score associated with an area of .90 which is 1.282
x − 360
(Appendix C). Use the z-score formula to solve for x: 1.282 = , x = 371.54 g.
9
b. P(xL < X < xU) = .50. Middle 50% means 25% below the lightest weight and 25%
above the heaviest weight. Lightest weight: =NORM.INV(.25,360,9) = 353.93 g.
Heaviest weight: =NORM.INV(.75,360,9) = 366.07 g.
c. P(X > x) = .80. Highest 80% is the lowest 20%: x =NORM.INV(.20,360,9) = 352.43 g.
We can also find the z-score associated with an area of .2 which is -.845. Use the z-
x − 360
score formula to solve for x: −.845 = , x = 352.40 g.
9
d. P(X < x) = .10. Lowest 10%: x =NORM.INV(.1,360,9) = 348.47 g. The z-score
associated with an area of .1 is −1.282 (Table 7.7). Use the z-score formula to solve for
x − 360
x: −1.282 = , x = 348.46 g.
9
Learning Objective: 07-5

7.37 a. P(X > 8) =1−NORM.DIST(8,6.9,1.2,1) = 0.17966. This probability indicates that the
event is not common but not unlikely. One could also say that an 8 pound baby is at
approximately the 80th percentile which also indicates a pretty high weight.
b. 90th percentile or P(X < x) = .90. NORM.INV(.9,6.9,1.2) = 8.44 pounds
c. 95% of birth weights would be between 4.55 and 9.25 pounds.
NORM.INV(0.025,6.9,1.2) = 4.55 pounds, NORM.INV(.975,6.9,1.2) = 9.25
Learning Objective: 07-5

7.38 a. We are looking for the top 5% which is the same as the bottom 95%. Because our Excel
functions give us cumulative values and because our table is the area less than z, we
want to use the lower 95%. NORM.INV(.95,600,100) = 764.49. We can also use the
standardized z-score formula. Using Appendix C, we know that an area of .95 is
associated with a z-score of 1.645. Use the z-score formula to solve for x:
x − 600
1.645 = , x = 764.5 .
100
b. We are looking for the lower 25%. NORM.INV(.25,600,100) = 532.5510. We know
that an area of .25 is associated with a z-score of −.675 (Appendix C). Use the z-score
x − 600
formula to solve for x: −.675 = , x = 532.5.
100
c. The middle 80% means 20% is outside our range and that is split between the upper and
lower tails. Therefore, we want the values associated with a lower tail of .10 and an
upper tail of .10. NORM.INV(.1,600,100) = 471.84, NORM.INV(.9,600,100) =
728.16. We know that an area of .1 is associated with a z-score of -1.282 (Appendix C

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ASBE 5e Solutions for Instructors

x − 600
or Table 7.7). Use the z-score formula to solve for x: −1.282 = , x = 471.80.
100
The area .9 is associated with a z-score of 1.282 and using the z-score formula we can
x − 600
solve for x: 1.282 = , x = 728.20.
100
Learning Objective: 07-5

7.39 P(X < xL) = .25 and P(X > xU) = .25. Solve for xL using =NORM.INV(.25,19.2,2.5) = 18
and and xU = NORM.INV(.75,19.2,2.5) = 21. The middle 50% of occupied beds falls
between 18 and 21.
Learning Objective: 07-5

7.40 Use the standardized z-score formula to solve for µ. P( X  $13.16) = .20 , and σ = $3. The
z-score associated with an upper tail of .20 is the same as looking for a z-score for the
lower area of .80. Using Excel: =NORM.S.INV(.8) = 0.84162. Solve for µ: 0.84162 =
13.16 − 
, µ = $10.64.
3
Learning Objective: 07-5

7.41 Given that P(X < $171) = .70, use z =NORM.S.INV(.7) = 0.5244 . Solve the following for
:: 0.5244 = ($171 − $157)/  = $26.70.
When using Appendix C: z ≈ .52 and  = $
Learning Objective: 07-5

7.42 a. P(X < 110) =NORM.DIST(110,100,15,1) = 0.7475


b. P(X < 2) =NORM.DIST(2,0,1,1) = 0.9772
c. P(X < 5000) =NORM.DIST(5000,6000,1000,1) = 0.1587
d. P(X < 450) =NORM.DIST(450,600,100,1) = 0.0668
Learning Objective: 07-4

7.43 a. P(80 < X < 110) = P(X < 110) – P(X < 80) =NORM.DIST(110,100,15,1)-
NORM.DIST(80,100,15,1) = .6563
b. P(1.50 < X < 2.00) = P(X < 2.00) – P(X < 1.50) =NORM.DIST(2,0,1,1)-
NORM.DIST(1.5,0,1,1) = .0441
c. P(4500 < X < 7000) = P(X < 7000) – P(X < 4500) =NORM.DIST(7000,6000,1000,1)-
NORM.DIST(4500,6000,1000,1) = .7745
d. P(225 < X < 450) = P(X < 450) – P(X < 225) =NORM.DIST(450,600,100,1)-
NORM.DIST(225,600,100,1) = .0667
Learning Objective: 07-4

7.44 a. 10th percentile: P(X < x) = .10 =NORM.INV(.1,360,9) = 348.47 g


b. 32nd percentile: P(X < x) = .32 =NORM.INV(.32,360,9) = 355.79 g
c. 75th percentile: P(X < x) = .75 =NORM.INV(.75,360,9) = 366.07 g
d. 90th percentile: P(X < x) = .90 =NORM.INV(.9,360,9) = 371.53 g
e. 99.9th percentile: P(X < x) = .999 =NORM.INV(.999,360,9) = 387.81 g

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ASBE 5e Solutions for Instructors

f. 99.99th percentile: P(X < x) = .9999 =NORMINV(.9999,360,9) = 393.47 g


Learning Objective: 07-5

7.45 a. P(wait more than an hour) = P(X > 60 min) = 1 – P(X < 60 min) =1-
NORM.DIST(60,40,28,1) = 0.2375
b. P(X < 20 min) =NORM.DIST(20,40,28,1) = 0.2375
c. P(X ≥ 10 min) = 1 – P(X < 10 min) =1-NORMDIST(10,40,28,1) = 0.8580
Learning Objective: 07-4

7.46 P(X ≤ 6000) =NORM.DIST(6000,7000,420,10 = .00863. It seems to be an adequate margin


of safety because there is only a .87% (i.e., less than 1%) chance of failing to meet the
high strength criterion.
Learning Objective: 07-4

7.47 Using Appendix C-2:


n  10 and n(1-)  10 so we can use the normal approximation to the binomial.
 = n =   = n (1 −  ) = 8.07
49.5 − 70
a. P(X < 50) ≈ P(X ≤ 49.5) = P(Z < ) = P(Z < −2.54) = .0055
8.07
100.5 − 70
b. P(X > 100) ≈ P(X ≥ 100.5) = P(Z > ) = P(Z > 3.78) = 1 − P(Z < 3.78) = 1 −
8.07
.99992 = .00008
Learning Objective: 07-6

7.48 Using Appendix C-2:


n  10 and n(1-)  10 (800×.03 = 24, 800×.97 = 776) so we can use the normal
approximation.
a.  = n = ()() = 24 ,  = n (1 −  ) = (24)(.97) = 4.8249
19.5 − 24
b. P(X ≥ 20) ≈ P(X ≥ 19.5) = P(Z > ) = P(Z > −.93) = 1 − P(Z < −.93) = 1−.1762 =
4.8249
.8238.
30.5 − 24
c. P(X > 30) ≈ P(X ≥ 30.5) = P(Z > ) = P(Z > −1.35) = 1 − P(Z < −1.35) = 1−.9115
4.8249
= .0885
Learning Objective: 07-6

7.49 Using Appendix C-2:


n  10 and n(1-)  10 (200×.90 = 180, 200×.1 = 20) so we can use the normal
approximation.
 = n = ()() = 180,  = n (1 −  ) = (200)(.9)(.1) = 4.2426
174.5 − 180
a. P(X ≥ 175) ≈ P(X ≥ 174.5) = P(Z ≥ ) = P(Z ≥ −1.30) = 1 − P(Z < −1.30) =
4.2426
1−.0968 = .9032
189.5 − 180
b. P(X < 190) ≈ P(X ≤ 189.5) = P(Z ≤ ) = P(Z ≤ 2.24) = .9875
4.2426

128
ASBE 5e Solutions for Instructors

Learning Objective: 07-6

7.50 Using Appendix C-2:


n  10 and n(1-)  10 (8465×.048 = 406.32, 8465×.952 = 776) so we can use the normal
approximation.
a. n = (8,465)(.048) = 406.32
399.5 − 406.32
b. P(X  400) ≈ P(X  399.5) = P(Z ≥ ) = P(Z ≥ −0.35) = 1 − P(Z < −0.35) =
19.6677
1− .3632 = .6368
449.5 − 406.32
c. P(X < 450) ≈ P(X ≤ 449.5) = P(Z ≤ ) = P(Z ≤ 2.20) = .9861
19.6677
Learning Objective: 07-6

7.51 Using Appendix C-2:


Let  =  =   =  = 5.29.
35.5 − 28
a. P(X > 35) ≈ P(X  35.5) = P(Z ≥ ) = P(Z ≥ 1.42) = 1 − P(Z < 1.42) = 1− .9222 =
5.29
.0778
24.5 − 28
b. P(X < 25) ≈ P(X ≤ 24.5) = P(Z ≤ ) = P(Z ≤ −0.66) = .2546
5.29
c.   20 therefore the normal approximation is appropriate.
d. P(X > 35) = 1 − P(X ≤ 35) =1-POISSON.DIST(35,28,1) = .0822 and P(X < 25) = P(X ≤
24) =POISSON.DIST(24,28,1) = .2599. The approximations are fairly close.
Learning Objective: 07-6

7.52 Let  =  =   =  = 12.25


174.5 − 150
a. P(X  175) ≈ P(X  174.5) = P(Z ≥ ) = P(Z ≥ 2.00) = 1 − P(Z < 2.00) = 1−
12.25
.9772 = .0228
124.5 − 150
b. P(X < 125) ≈ P(X ≤ 124.5) = P(Z ≤ ) = P(Z ≤ −2.08) = .0188.
12.25
c.   10 therefore the normal approximation is appropriate.
d. From Excel: P(X  175) = 1 − P(X ≤ 174) = 1 – POISSON.DIST(174, 150,1) = .0248
and P(X < 125) = P(X ≤ 124) =POISSON.DIST(124, 150,1) = .0165. The
approximations are fairly close.
Learning Objective: 07-6

7.53 a. P(X > 7) = e−  x = e− (0.3)(7) = .1225


b. P(X < 2) = 1 − e−  x = 1 − e− (0.3)(2) = 1 − .5488 = .4512
Learning Objective: 07-7

7.54 a. P(X > 30 minutes) = e−  x = e− (4.2)(.5) = .1225


b. P(X < 15 minutes) = 1 − e− (4.2)(.25) = 1 − .3499 = .6501

129
ASBE 5e Solutions for Instructors

c. P(15 < X < 30) = P( X  30) − P( X  15) = (1 − e − (4.2)(.5) ) − (1 − e − (4.2)(.25) ) = .8775 − .6501 =
.2274
Learning Objective: 07-7

7.55  = 2.1 alarms/minute or  = .035 alarms/second


a. P(X < 60 seconds) = 1−e−x = 1− e(−0.035)(60) =1- .1225 = .8775
b. P(X > 30 seconds) = e−x =e(−0.035)(30) = .3499
c. P(X > 45 seconds) = e−x =e(−0.035)(45) = .2070
Learning Objective: 07-7

7.56 Use  = 1/30


a. P((X  40 days) = e−x =e−(1/30)(40) = e-1.333 = .2636
b. P(X ≤ 20 days) = 1 – e−x = 1– e−(1/30)(20) = 1 – e-.667 = 1 – .5134 = .4866
Learning Objective: 07-7

7.57 Use  = (2.8/min)(1min/60sec) = .0467/sec


a. (X  30 seconds) = e−x = e−(.0467)(30) = e−1.4 = .2466
b. P(X ≤ 15 seconds) = 1 − e−x == 1- e−(.0467)(15) = 1 − e-.70 = 1 − .4966 = .5034
c. P(X > 60 seconds) = e−x = e−(.0467)(60) = e−2.8 = .0608
Learning Objective: 07-7

7.58 a. .9 = 1− e−t. Solve for t using  = 1/5: .9 = 1− e−(1/5)t , .1 = e−(1/5)t, ln(.1) = ln[e−(1/5)t ],
−2.3026 = −(1/5)t, t = −2.3026/-0.2 = 11.51 minutes
b. .9 = 1− e−t. Solve for  using t = 10 minutes: .9 = 1− e−(λ)10 , .1 = e−(λ)10, ln(.1) =
ln[e−(λ)10], −2.3026 = −(λ)10, λ = −2.3026/-10 = .23 responses per minute or 4.35
minutes on average
Learning Objective: 07-8

7.59 a. .5 = e−t. Solve for t using  =  .5 = e−(4.2)t , ln(.5) = ln[e−(4.2)t ],


−0.6931 = −(4.2)t, t = −0.6931/−4.2 = 0.1650 hours
b. .25 = e−t . Solve for t using  =  5 = e−(4.2)t , ln(.25) = ln[e−(4.2)t ],
−1.3863 = −(4.2)t, t = −1.3863/−4.2 = 0.3301 hours
c. .10 = e−t . Solve for t using  =   = e−(4.2)t , ln(.10) = ln[e−(4.2)t ],
−2.3026 = −(4.2)t, t = −2.3026/−4.2 = 0.5482 hours
Learning Objective: 07-8

7.60 a. P(X < t) = .50 so P(X > t) = .50 = e−t. Solve for t using λ = 0.5: .5 = e−(0.5)t ,
ln(.5) = ln[e−(0.5)t ], −0.6931 = −(0.5)t, t = −0.6931/−0.5 =1.3862 minutes
b. P(X < t) = .25 so P(X > t) = .75 = e−t. Solve for t using λ = 0.5: .75 = e−(0.5)t ,
ln(.75) = ln[e−(0.5)t ], −0.2877 = −(0.5)t, t = −0.2877/−0.5 = 0.5754 minutes
c. P(X < t) = .30 so P(X > t) = .70 = e−t. Solve for t using λ = 0.5: .7 = e−(0.5)t ,
ln(.7) = ln[e−(0.5)t ], −0.3567 = −(0.5)t, t = −0.3567/−0.5 =0.7134 minutes
Learning Objective: 07-8

130
ASBE 5e Solutions for Instructors

7.61 a. P(X > t) = .5. Use  = 1/20 = .05. To solve for t: .5 = e−(0.5)t ,
ln(.5) = ln[e−(0.5)t ], −0.6931 = −(0.05)t, t = −0.6931/−0.05 =13.862 minutes
b. The distribution on time is skewed to the right therefore the median < mean.
c. P(X > t) = .25. Use  = 1/20 = .05. To solve for t: .25 = e−(0.5)t ,
ln(.25) = ln[e−(0.5)t ], −1.3863 = −(0.05)t, t = −1.3863/−0.05 = 27.726 minutes
Learning Objective: 07-8

7.62 a. P(X < t) = .1 so P(X > t) = .90 = e−t. Solve for t using λ = 1/8 = .125: .9 = e−(0.125)t ,
ln(.9) = ln[e−(0.125)t ], −0.1054 = −(0.125)t, t = −0.1054/−0.125 = 0.8432 years
b. P(X < t) = .2 so P(X > t) = .80 = e−t. Solve for t using λ = 1/8 = .125: .8 = e−(0.125)t ,
ln(.8) = ln[e−(0.125)t ], −0.2231 = −(0.125)t, t = −0.2231/−0.125 = 1.7848 years
Learning Objective: 07-8

7.63 a.  = (0+25+75)/3 =33.33


02 + 252 + 752 − 0  25 − 0  75 − 25  75
b.  = = 15.59
18
c. $25 falls between $0 and $25 so use the equation P(X < $25) =
( x − a) 2 (25 − 0) 2
= = .3333
(b − a)(c − a) (25 − 0)(75 − 0)
d. Shaded area represents the probability.

0 25 75

Learning Objective: 07-9

7.64 a.  = (50+105+65)/3 = 73.33


502 + 652 + 1052 − (50)(65) − (50)(105) − (65)(105)
b.  = = 11.61
18
c. $75 falls between b and c so use the equation: P(X > 75) =
(c − x ) 2 (105 − 75)2
= = .4091
(c − a)(c − b) (105 − 50)(105 − 65)
d. Shaded area represents the probability.

131
ASBE 5e Solutions for Instructors

Learning Objective: 07-9

7.65 a. Discrete, can be counted.


b. Continuous, can take on fractional values.
c. Continuous, can take fractional values.
Learning Objective: 07-1

7.66 a. Area = .5(2) = 1 therefore this is a valid PDF.


b. Area = ½(2)(2) = 2 therefore this is not a valid PDF.
c. Area = ½(.5)(2)(2) = 1 therefore this is a valid PDF.
Learning Objective: 07-1

7.67 a.  = (25+65)/2 = 45.


(65 − 25) 2
b.  = = 11.547
12
c. P(X > 45) = (65-45)/(65-25) = 0.5
d. P(X > 55) = (65-55)/(65-25) = 0.25
e. P(30< X <60) = (60-30)/(65-25) = 0.75
Learning Objective: 07-2

5 + 50 55
7.68 a.  = = = 27.5 inches per second.
2 2
(50 − 5) 2
b.  = = 12.99 inches per second
12
Q1 − 5
c. Use the CDF to solve for the quartiles. P(X ≤ Q1 ) = .25. = .25 , Q1 = 16.25
50 − 5
Q3 − 5
inches per second. P(X ≤ Q3 ) = .75. = .75 , Q3 = 38.75 inches per second.
50 − 5
d. P(re-swiping) = 1− P(10 < X < 40) = 1 − .6667 = .3333. 33.33% must re-swipe.
Learning Objective: 07-2

7.69 Answers will vary.


a. Would expect distribution to be skewed to the right.
b. Would expect distribution to be skewed to the right.
c. Normal
d. Normal
Learning Objective: 07-3

132
ASBE 5e Solutions for Instructors

7.70 All can be right-skewed by outliers.


Learning Objective: 07-3

7.71 a. z = (82-75)/7 = 1, =NORM.S.DIST(1,1) = .8413, 84th Percentile


b. z = (93-75)/7 = 2.57, =NORM.S.DIST(2.57,1) = .9949, 99th Percentile
c. z = (63-75)/7 = −1.714, =NORM.S.DIST(-1.714,1) = .0433, 4th Percentile
Learning Objective: 07-4

.74 + .98
7.72 a.  = = .86 ppm.
2
(.98 − .74) 2
b.  = = .0693 ppm.
12
c. We want P(X > .80) so use either 1 – P(X < .80) = 1 – (.80–.74)/(.98–.74) = 1 – .25 = .75
OR P(.80  x  .98) = (.98–.80)/(.98–.74) = .75
d. P(X < 85) =(.85–.74)/(.98–.74) = .4583
e. P(.8 < X <.9) = (.9–.8)/(.98–.74) = .4167
Learning Objective: 07-4

7.73 a. P(X > x) = .50 = P(X < x) = .50. x =NORM.INV(.5,450,80) = 450 bags
b. P(X < x) = .25 =NORM.INV(.25,450,80) = 396.04 bags
c. P(xL < X < xU) = .80, xL =NORM.INV(.1, 450,80) = 347.48 bags and xU
=NORM.INV(.9, 450,80) = 552.52 bags
d. 5th percentile: P(X < x) = .05. x =NORM.INV(.05,450,80) = 318.42 bags
Learning Objective: 07-4

7.74 a. P(X < x) = .50. x =NORM.INV(.5,235,10) = 235 pizzas


b. P(X > x) = .25 = P(X < x) = .75. x =NORM.INV(.75,235,10) = 241.74 pizzas
c. 90th percentile: P(X < x) = .90. x =NORM.INV(.90,235,10) = 247.82 pizzas
d. P(xL < X < xU) = .80, xL =NORM.INV(.1, 235,10) = 222.18 pizzas and xU
=NORM.INV(.9, 235,10) = 247.82 pizzas
Learning Objective: 07-5

7.75 a. The first quartile is associated with the lowest 25%. P(X < Q1) = .25,
Q − 7.00
z =NORM.S.INV(.25) = − .67, −0.67 = 1 , Q1 = $6.77
0.35
b. The second quartile is associated with the lowest 50%. P(X < Q2) = .5,
Q − 7.00
z =NORM.S.INV(.5) = 0, 0 = 2 , Q2 = $7.00
0.35
c. The 90th percentile is
x − 7.00
z =NORM.S.INV(.90) = 1.2816, 1.2816 = , x = $7.45
0.35
Learning Objective: 07-5

133
ASBE 5e Solutions for Instructors

7.76 a. The likelihood of a value greater than the mean is .50 because the whole area under the
curve is 1 and the mean is the midway point.
b. This corresponds to P(Z > 1) or 1 – P( Z  1) = 1 − .8413 = .1587 (Use Appendix C-2 to
get P( Z  1) )
c. This corresponds to P(Z > 2) or 1 − P( Z  2) = 1− .9772 = 0.0228 (Use Appendix C-2 to
get P( Z  2) )
d. This corresponds to P(–2 < Z <2) = P( Z  2) − P( Z  −2) = .9772 − .0228 = .9544 (Use
Appendix C-2)
Learning Objective: 07-4

7.77 a. P(X>130) =1-NORM.DIST(130,115,20,1) = .2266


b. P(X<100) =NORM.DIST(100,115,20,1) = .2266
c. P(X<91) =NORM.DIST(91,115,20,1) = .1151
Learning Objective: 07-4

579 − 579
7.78 a. P(X < 579) = P( Z  ) = P( Z  0) = .5 .
14
590 − 579
b. P(X > 590) = 1– P( X  590) = 1 − P( Z  ) = 1 − P( Z  .79) = 1− .7852 =
14
.2148. (From App C-2)
From Excel: P(X > 590) =1-NORM.DIST(590,579,14,1) = .21602
600 − 579
c. P(X < 600) = P( Z  ) = P( Z  1.5) = .9332
14
Learning Objective: 07-4

7.79 a. P(28<X<32) =NORM.DIST(32,30,2,1)-NORM.DIST(28,30,2,1) = .8413 − .1587 =


.6826
b. P(X<28) =NORM.DIST(28,30,2,1) = .1587
c. P(X<22.5) =NORM.DIST(22.5,30,2,1) = 8.84E-05
Learning Objective: 07-4

120 − 140
7.80 a. P(X > 120 seconds) = 1–P(X<120) = 1 − P( Z  ) = 1 − P( Z  −.80) = 1− .2119
25
= .7881
180 − 140
b. P(X > 180 seconds) = 1– P(X<180) = 1 − P( Z  ) = 1 = P( Z  1.6) = 1 – .9452 =
25
.0548
c. Using Appendix C-2, the z-score associated with a probability of .95 is 1.645. Use the z-
x − 140
score to solve for x. 1.645 = , x = 181.125
25
Using Excel: NORM.INV(.95, 140,25) =181.121
d. Using Appendix C-2, the z-score associated with a probability of .99 is 2.325. Use the z-
x − 140
score to solve for x. 2.325 = , x = 198.125.
25
134
ASBE 5e Solutions for Instructors

Using Excel: NORM.INV(.99,140,25) = 198.159.


Learning Objective: 07-4

7.81 P(a tennis ball fails to meet the specifications) = 1−P(1.975 < X < 2.095) =1-
(NORM.DIST(2.095,2.035,.03,1)-NORM.DIST(1.975,2.035,.03,1)) =1 – (.9773 −
.0228) = .0455.
Learning Objective: 07-4

99 + 107
7.82 a.  = = 103 degrees
2
(107 − 99) 2
b.  = = 2.3094 degrees
12
Q3 − 99
c. Use the CDF to find the third quartile. P(X < Q3) = = .75. Q3 = 105 degrees.
107 − 99
Learning Objective: 07-4
Learning Objective: 07-5

230 − 207
7.83 Using Appendix C-2: P(X ≥ 230) = P(Z ≥ ) = P(Z ≥ 1.64) = 1− P(Z ≥ 1.64)
14
.0505.
Learning Objective: 07-4

30 − 22
7.84 a. P(X > 30) = 1– P( X  30) = 1 − P( Z  ) = 1 = P( Z  2.67) = 1 – .9962 = .0038.
3
b. Assuming finishing times are independent: P(all three men finish in time) = (1–.0038)3 =
.9886.
Learning Objective: 07-4

7.85 P(X ≤ 90) =NORM.DIST(90,84,10,1) = .7258


Learning Objective: 07-4

453 − 470
7.86 P( X  453) = P( Z  ) = P( Z  −3.4) = .00034. It is very unlikely that a box will
5
contain less than 453 grams.
Learning Objective: 07-4

5200 − 4905
7.87 Using App C-2: P(X>5200) = P(Z > ) = P(Z > .83) = 1 − P(Z < .83) = .2033.
355
Using Excel: 1−NORM.DIST(5200,4905,355,1)=.2030
Learning Objective: 07-4

135 − 145
7.88 a. P(X< 135) = P( Z  ) = P( Z  −.5) = .3085.
20

135
ASBE 5e Solutions for Instructors

175 − 145
b. P(X > 175) = 1 − P( X  175) = 1 − P( Z  ) = 1 = P( Z  1.5) = 1 – .9332 = .0668.
20
165 − 145 125 − 145
c. P(125 < X < 165) = P( X  165) − P( X  125) = P( Z  ) − P( Z  )=
20 20
P(Z < 1) – P(Z < −1) = .8413 − .1587 = .6826.
d. With variability, physicians run the risk of not treating a patient with dangerous blood
pressure or treating a patient with healthy blood pressure. Understanding variability
allows physicians to minimize the chances of making these two types of errors.
Learning Objective: 07-4

7.89 a. =NORM.S.DIST(-1.62,1) = .0526. John scored better than only 5.26% of the others.
b. =NORM.S.DIST(.50,1) = .6915. Mary scored above average, better than approximately
69.15% of others.
c. =NORM.S.DIST(1.79,1) = .9633. Zak scored better than 96.33% of others.
d. =NORM.S.DIST(2.48,1) = .9934. Frieda scored better than 99.34% of others.
Learning Objective: 07-3
Learning Objective: 07-4

7.90 a. False, the normal distribution is asymptotic. Thus, a value outside the given interval is
possible.
b. False, the standardized values do allow for meaningful comparison. Z scores are unit
free.
c. False, the normal distribution is a “family” of distributions, each having the same shape,
but different means and standard deviations.
Learning Objective: 07-3

*7.91 a. For route A: P(X<54) =NORM.DIST(54,54,6,1) = .5. For route B: P(X<54)


=NORM.DIST(54,60,3,1) = .0228. He should take route A.
b. For route A: P(X<60) =NORM.DIST(60,54,6,1) = .8413. For route B: P(X<60)
=NORM.DIST(60,60,33,1) = .5. He should take route A.
c. For route A: P(X<66) =NORM.DIST(66,54,6,1) = .9722. For route B: P(X<66)
=NORM.DIST(66,60,3,1) = .9772. He could take either route. Because the standard
deviation is smaller for route B, the chance of getting to the airport in less than 66
minutes is the same for each route.
Learning Objective: 07-4

7.92 a. Under filling the bottle means putting less than 500 ml in the bottle. Find the value of 
for which P(X > 500) = .95. This corresponds to a z = −1.645. Use the z-score formula
500 − 
to solve for  − 1.645 =  µ = 508.225 ml.
5
500 − 
b. To ensure that 99% contain at least 500 ml, solve − 2.326 = for µ, µ = 511.63.
5
500 − 
c. To ensure that 99.9% contain at least 500 ml, solve − 3.09 = for µ, µ = 515.45.
5
Learning Objective: 07-5

136
ASBE 5e Solutions for Instructors

7.93 Find the value for X such that P(X > x) = .80. This corresponds to a z = −.842. Use the z-
x − 12.5
score formula to solve for x. −.842 =  x = 11.49 inches.
1.2
Learning Objective: 07-5

28 − 28
7.94 a. For method A: P(X<28) = P( Z  ) = P( Z  0) = .5. For method B: P(X<28) =
4
28 − 32
P( Z  ) = P( Z  −2) = .0228. Method A is preferred because there is a greater
2
chance of completion within 28 minutes.
38 − 28
b. For method A: P(X<38) = P( Z  ) = P( Z  2.5) = .9938. For method B:
4
38 − 32
P(X<38)= P( Z  ) = P( Z  3) = .9987. Method B is preferred because there is
2
a greater chance of completion within 38 minutes.
36 − 28
c. For method A: P(X<36) = P( Z  ) = P( Z  2) = .9772. For method B: P(X<36) =
4
36 − 32
P( Z  ) = P( Z  2) = .9772. Either method is acceptable because they both give
4
the same probability.
Learning Objective: 07-4

7.95 a. P(X > μ) = .5 (property of the normal distribution). Assuming independence, the
probability that both exceed the mean is: .5×.5 =.25.
b. P(X < μ) = .5 (property of the normal distribution). Assuming independence, the
probability that both are less than the mean is: .5×.5 =.25.
c. P(X<μ) = .5 (property of the normal distribution). Assuming independence, the
probability that one is greater than and one is less than the mean is: .5×.5 =.25. There
are two combinations that yield this, so the likelihood is: .25+.25 = .50 that one exceeds
the mean and one is less than the mean.
d. P(X = μ) = 0, this is a property of a continuous random variable. The probability that
both equal the mean is zero.
Learning Objective: 07-4

7.96 Use the normal approximation to the binomial distribution because we clearly meet the
requirement that n  10 and n(1–)  10. (2000)(.02) = 40 , (2000)(1 − .02) = 1,960 .
The normal parameters are:  = (2000)(.02) = 40, = (40)(.98) = 6.26 . Using
appendix C-2:
49.5 − 40
a. P(X ≥ 50) ≈ P(X ≥ 49.5) and the continuity corrected Z-value is z = = 1.52 .
6.26
P(Z > 1.52) = 1− .9357 = .0643. There is a 6.43% chance of at least 50 twin births.

137
ASBE 5e Solutions for Instructors

Using Excel: P(X ≥ 49.5) =1-NORM.DIST(49.5,40,6.26,1) = .0646


34.5 − 40
b. P(X < 35) ≈ P(X ≤ 34.5) and the continuity corrected Z-value is z = = −.88 .
6.26
P(Z < − .88) = .1894. There is an 18.94% chance of fewer than 35 twin births.
Using Excel: P(X ≤ 34.5) =NORM.DIST(34.5,40,6.26,1) = .1898
Learning Objective: 07-6

7.97 Use µ = 100(.25) = 25 and σ = 100(.25)(.75) =4.33. P(X < 20) ≈ P(X ≤ 19.5)
=NORM.DIST(19.5,25,4.33,1) = .1020
Learning Objective: 07-6

7.98 Use the normal approximation to the binomial distribution because we clearly meet the
requirement that n  10 and n(1-)  10. The parameters are:
 = (1,000)(.06) = 60,  = (60)(.94) = 7.51 . Use the NORM.INV function in Excel
with probability of .25 for the first quartile, .75 for the third quartile,  = 60 and  =
7.51. Q1 =NORM.INV(.25,60,7.51) = 54.93 cars, Q3 =NORM.INV(.75,60,7.51) =
65.07 cars. Alternatively, use the z-score equation where z = −.675 for Q1 and z = .675
Q − 60 Q − 60
for Q3 −.675 = 1 , Q1 = 54.93 . .675 = 3 , Q3 = 65.07.
7.51 7.51
Learning Objective: 07-6

7.99 Use the normal approximation to the binomial distribution because we clearly meet the
requirement that n  10 and n(1-)  10. n = () =  n(1-) = 100(.75) = 75.
a. Find the value of x such that P(X ≥ x) = .05 or P(X < x) = .95.
=NORM.INV(.95,25,4.33) = 32.12. Set passing at 33 correct answers. Less than 5% of
the time a guesser will correctly guess the answer 33 out of 100 questions.
b. Find the value of X such that P(X ≥ x) = .01 or P(X < x) = .99.
=NORM.INV(.99,25,4.33) = 35.07. Set passing at 36 correct answers. Less than 1% of
the time a guesser will correctly guess the answer 36 out of 100 questions.
c. Use the NORM.S.INV function in Excel to find the z-scores for the quartiles. For the
first quartile use =NORM.S.INV(.25) = −0.675, for the third quartile use
=NORM.S.INV(.75) = 0.675.
Q − 25 Q − 25
−.675 = 1 , Q1 = 22.08. .675 = 3 , Q3 = 27.92.
4.33 4.33
Learning Objective: 07-6

7.100 Use the normal approximation of the binomial distribution because we clearly meet the
requirement that n  10 and n(1-)  10. The parameters are:  =
n = ()() =  = (160)(.2) = 5.6569 .

138
ASBE 5e Solutions for Instructors

149.5 − 160
a. P(X < 150) ≈ P(X ≤ 149.5). The continuity-corrected z-score is z = = −1.86
5.6569
. Using Appendix C-2: P( Z  −1.86) = .0314
Using Excel P(X ≤ 149.5) =NORM.DIST(149.5,160,5.6569,1) = .0317
b. P(X ≥ 150) ≈ P(X ≥ 149.5) = 1 − .0314 = .9686. Or 1 − .0317 = .9683
Learning Objective: 07-6

7.101 Use the normal approximation of the binomial distribution because we clearly meet the
requirement that n  10 and n(1-)  10. The parameters are:  =
n = ()() =   = (30)(.98) = 5.422 .
24.5 − 30
a. P(X ≥ 25) ≈ P(X ≥ 24.5). The continuity-corrected z-score is z = = −1.01 .
5.422
Using Appendix C-2: P( Z  −1.01) = 1−.1562 = .8438
Using Excel P(X ≥ 24.5) =1-NORM.DIST(24.5,30,5.422,1) = .8448
40.5 − 30
b. P(X > 40) ≈ P(X ≥ 40.5). The continuity-corrected z-score is z = = 1.94 .
5.422
Using Appendix C-2: P( Z  1.94) = 1−.9738 = .0262
Using Excel: P(X ≥ 40.5) =1-NORM.DIST(40.5,30,5.422,1) = .0264
Learning Objective: 07-6

7.102 Converting the rate from days to years,  = () = 73. Let  =  = 73 and  =  =
8.544. It is appropriate to use the normal approximation given that   20. P(X < 60) ≈
59.5 − 73
P(X ≤ 59.5). z = = −1.58 . From Appendix C-2: P(Z < −1.58) = .0571. Using
8.544
Excel: P(X ≤ 59.5) =NORM.DIST(59.5,73,8.544,1) = .0571
Learning Objective: 07-6

7.103 a. P(X > 100,000) = e−x =e−(1/70000)(100000) = .2397


b. P(X ≤ 50,000) = 1−e−x =1−e−(1/70000)(50000) = 1 - .4894 = .5105
c. P(50,000 ≤ X ≤ 80,000) =(1−e−(1/70000)(80000)) – (1−e−(1/70000)(50000)) = (1 – .3189) – (1 –
.4895) = .1706
Learning Objective: 07-7

7.104 a. P(X>6) = e−(.1)(6) = .5488. 54.88% chance they will wait at least 6 months until the next
claim.
b. P(X>12) = e−(.1)(12) = .3012. 30.12% chance they will wait at least a year until the next
claim.
c. P(X>24) = e−(.1)(24) = .0907. 9.07% chance they will wait at least 2 years until the next
claim.
d. P(6 < X < 12) = P(X < 12) − P(X < 6) = (1 − .3012) − (1 − .5488) = .2476. 24.76%
chance they will wait between 6 months to a year.
Learning Objective: 07-7

139
ASBE 5e Solutions for Instructors

7.105 a. P(X ≤ 3 minutes) =1 - e−x =1 - e−(1/3)(3) = 1 - .3679 = .6321


b. The distribution is skewed to the right so the mean is greater than the median.
Learning Objective: 07-7
1
7.106 Convert 30 years to hours: 30 years × 365 days × 24 hours = 262,800. MTBF = =

400,000 hours .
 262,800 
− 
a. P(time to failure > 30 years) = P(time to failure > 262,800) = e−  x = e  400,000 
= .5184.
 26,280 
− 
b. P( X  3 years) = P( X  26,280hours) = e−  x = 1 − e = 1 − .9364 = .0636 . Yes, the
 400,000 

probability of failure within the first three years is only .0636.


Learning Objective: 07-7

7.107 a.  = (300 + 350 + 490)/3 = 380.


3002 + 3502 + 4902 − 300(350) − 300(490) − 350(490)
b.  = = 40.21
18
(490 − 400) 2
c. P(X > 400) = = .3045 .
(490 − 300)(490 − 350)
Learning Objective: 07-9

7.108 a.  = (50 + 95 + 60)/3 = 68.33


502 + 602 + 952 − 50(60) − 50(95) − 60(95)
b.  = = 9.65
18
(95 − 75) 2
c. P(X <75) = 1 − = .7460
(96 − 50)(95 − 60)

d.

Learning Objective: 07-9

7.109 a.  = (500 + 700 + 2100)/3 = 1100.


5002 + 7002 + 21002 − 500*700 − 500* 2100 − 700* 2100
b.  = = 355.90
18
(2100 − 750) 2
c. P(X > 750) = = .8136 .
(2100 − 500)(2100 − 700)
d. Shaded area is probability in part c.

140
ASBE 5e Solutions for Instructors

500 750 2100

Learning Objective: 07-9

7.110 a. The Excel formula could be: NORM.S.INV(RAND()).


b. Answers will vary.
c. Answers will vary.
Learning Objective: 07-3
Learning Objective: 07-4

7.111 a. The Excel formula could be: NORM.INV(RAND(),4000,200).


b. Answers will vary.
c. Answers will vary.
Learning Objective: 07-3
Learning Objective: 07-4

7.112 a. The z scores were, respectively, 5.75, 4.55, 5.55, and 5.45.
195 − 80
z= = 5.75
20
171 − 80
z= = 4.55
20
191 − 80
z= = 5.55
20
189 − 80
z= = 5.45
20
b. If the exams scores had an historical mean and standard deviation of 80 and 20 with a
normal distribution then the exam scores reported by the four officers were highly
unlikely. All scores were outliers because they were higher than 80 + 3  = 80 +
(3)(20) = 140.
Learning Objective: 07-3
Learning Objective: 07-4

141

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