What is the likelihood of finding a price between $3.68 and $3.85 for a gallon of gasoline from a normally distributed population of gas prices? Assume μ = $3.78 and σ = $0.05.
A)0.058
B)0.8965
C)1.0
D)0.2257

Question

Quizplus · Accepted Answer

We need to calculate the z-scores for both prices:
z1 = (3.68-3.78)/0.05 = -2
z2 = (3.85-3.78)/0.05 = 1.4
Using a standard normal table, the area between z = -2 and z = 1.4 is approximately 0.8965. Therefore, the likelihood of finding a price between $3.68 and $3.85 for a gallon of gasoline is 0.8965 or 89.65%.

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