Suppose the dealer incentive per vehicle for Honda's Acura brand is thought to be bell-shaped and symmetrical with a mean of $2,500 and a standard deviation of $300. Based on this information, what interval of dealer incentives would we expect approximately 99.7% of vehicles to fall within?

Question

Quizplus · Accepted Answer

The 99.7% interval corresponds to ±3 standard deviations from the mean in a bell-shaped (normal) distribution. Calculating 3 standard deviations from the mean ($2,500 ± 3*$300) gives us an interval of $1,600 to $3,400.

Suppose the Dealer Incentive Per Vehicle for Honda's Acura Brand