The recent economic recession caused a plunge in new cars sales from 2008 to 2010. This trend resulted in a significant shortage of used cars during the next few years which, in turn, pushed up used car prices. Suppose that the average price of a 5-year-old used car is $16,230 with a standard deviation of $4,740. Assume that the price of a 5-year-old used car follows the normal probability distribution.

a. What is the probability that a randomly selected 5-yearold car costs 1. less than $18,500?

2. more than $11,300?

3. between $10,000 and $14,000?

4. between $12,500 and $17,000?

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

c. What is the cost of a 5-year-old car in the 90th percentile?

AppendixLO1