Assume the room rate for a three-star hotel in Paris follows a normal distribution with a mean of 175 euros and a standard deviation of 16 euros.

a. What is the probability that a randomly selected threestar hotel has a room rate of 1. less than 195 euros?

2. more than 180 euros?

3. exactly 170 euros?

4. between 150 and 182 euros?

b. Use Excel or PHStat to confirm the answers in part a.

c. A particular hotel would like to set its rate so that only 20% of the hotels in Paris will have lower rates. What room rate should the hotel set?

AppendixLO1