Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose the distribution of miles driven on four year leases follows the normal distribution with a mean of 45000 miles and a standard deviation of
Suppose the distribution of miles driven on four year leases follows the normal distribution with a mean of 45000 miles and a standard deviation of 500 miles. The automobile company would like to include a $0.15 per mile penalty for excessive mileage to the terms of the lease. What mileage limit would result in no more than 8% of leases being over the limit?
do not round intermediate calculations. Round final answers to 4 decimals. Do not use probability tables to find probabilities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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