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i don't know how to do this..?

A muffler company advertises that u will receive a rebate if it takes longer than 30min to replace your muffler. Experience has shown that the time taken to replace a muffler is approximately normally distributed with a mean of 25min and a standard deviation of 2.5min. What proportion of customers receive rebates?

The answer is 0.0228.

Then, another follow up question arises,

What should be the rebate-determining time of 30min in previous Q be changed to if the company wishes to provide only 1% of the customers with a rebate?

The answer is 25+2.33(2.5)

I don't understand it at all

1 Answer

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  • Anonymous
    9 years ago
    Favourite answer

    Use a normal distribution table or graphic calculator

    Pr(X>30) = Pr(Z>2) = 0.0228

    and use inverse normal

    Pr(Z > a)= 0.01 ----> a = 2.33 ---> X = 25+2.33(2.5) = ..

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