During the past six months,73.2% of US households purchased sugar.Assume that these expenditures are approximately normally distributed with a mean of $8.22 and a standard deviation of $1.10. Find the probability that a household spent more than $16.00
A)1.00
B)0.00
C)0.50
D)0.98

Question

Quizplus · Accepted Answer

Since the mean expenditure on sugar per household is $8.22, and the standard deviation is $1.10, spending more than $16.00 would be an outlier. Therefore, the probability of a household spending more than $16.00 is virtually zero. The z-score for an expenditure of $16.00 is (16-8.22)/1.10=7.05. According to the standard normal distribution table, the probability of getting a z-score greater than 6 is almost zero, which means the probability of a household spending more than $16.00 is negligible. Therefore, the answer is B) 0.00.

During the Past Six Months,73