During the past six months,73.2 percent 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 $10.00 on sugar.
A).7320
B).9474
C).0526
D).2680

Question

Quizplus · Accepted Answer

We need to find the probability that a household spent more than $10.00 on sugar.

First, we need to standardize the value of $10.00.

z = (x - μ) / σ
z = (10.00 - 8.22) / 1.10
z = 1.62

Using a standard normal distribution table or a calculator, we find that the probability of a value being greater than 1.62 is approximately 0.0526.

Therefore, the answer is choice C.

During the Past Six Months,73