Suppose the average price for new cars has a mean of $30,100 and a standard deviation of $5,600. Based on this information, what interval of prices would we expect at least 95% of new car prices to fall within?
A) $24,500 to $35,700
B) $18,900 to $41,300
C) $13,300 to $46,900
D) $7.700 to $52,500

Question

Quizplus · Accepted Answer

To find the interval of prices where at least 95% of new car prices fall within, we need to use the formula:
(mean - 2*standard deviation, mean + 2*standard deviation)
Substituting the given values, we get:
(30,100 - 2*5,600, 30,100 + 2*5,600)
= (18,900, 41,300)
Therefore, at least 95% of new car prices would fall within the interval of $18,900 to $41,300. Therefore, the best choice is B.

Suppose the Average Price for New Cars Has a Mean