Question
According to a recent survey, the average daily rate for a luxury hotel is $238.78. Assume the daily rate follows a normal probability distribution with
According to a recent survey, the average daily rate for a luxury hotel is
$238.78. Assume the daily rate follows a normal probability distribution with a standard deviation of $22.89.
Complete parts a through d below.
a. What is the probability that a randomly selected luxury hotel's daily rate will be less than $261?
(Round to four decimal places as needed.)
b. What is the probability that a randomly selected luxury hotel's daily rate will be more than $268?
(Round to four decimal places as needed.)
c. What is the probability that a randomly selected luxury hotel's daily rate will be between
$244
and $264?
(Round to four decimal places as needed.)
d. The managers of a local luxury hotel would like to set the hotel's average daily rate at the
90th percentile, which is the rate below which 90% of hotels' rates are set. What rate should they choose for their hotel?
The managers should choose a daily rate of?
(Round to the nearest cent as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started