It has been reported that households in the West spend an annual average of $6050 for groceries Assume a normal distribution with a standard deviation of $1500 Source David Stuckey and Sam Ward, Home Cooked, USA Today, July 25, 2006, p 1A a What is the probability that a randomly selected Western h...

Given x annual expenditure is normally distributed with m ...

It has been reported that households in the West spend an annual average of $6050 for groceries.

Question:

It has been reported that households in the West spend an annual average of $6050 for groceries. Assume a normal with a standard deviation of $1500. Source: David Stuckey and Sam Ward, “Home Cooked,” USA Today, July 25, 2006, p. 1A.
a. What is the probability that a randomly selected Western household spends more than $6350 for groceries?
b. How much money would a Western household have to spend on groceries per year in order to be at the 99th percentile (i.e., only 1% of Western households would spend more on groceries)?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...