The average fee per student (an amount that includes activities fees, technology fees, curriculum fees, etc.) at four-year colleges is $1043.The fee are normally distributed with a standard deviation of $68.To ensure no more than a 1% chance of being short, a student should budget how much for fees.
A)$1182.27
B)$1201.44
C)$1078.34
D)$1437.85
E)$1343.76

Question

Quizplus · Accepted Answer

To ensure no more than a 1% chance of being short, we need to find the fee amount at the 99th percentile of the normal distribution. Using the Z-score formula and looking up the Z-score for 99% in a standard normal distribution table gives us a Z-score of approximately 2.33. We then use the formula: X = μ + Zσ, where μ is the mean ($1043), Z is the Z-score (2.33), and σ is the standard deviation ($68). Plugging in the values gives us X = 1043 + 2.33(68) ≈ $1201.44.

The Average Fee Per Student (An Amount That Includes Activities