Question

Assume the annual day care cost per child is normally distributed with a mean of $9000 and a standard deviation of $900 What percnat of day care costs are more than $8400 annually? Click hare to yisw pagn 1 of the itandard nomaldiatrioufion table. Crick here 10 velek. page? 2 of the standard normal distribution table. फ1 io (Round to two decimal places as needed)

Answer 1

To find the percentage of day care costs that are more than $8400 annually, we can use the standard normal distribution table.

First, we need to standardize the value $8400 using the formula z = (x - μ) / σ, where x is the value, μ is the mean, and σ is the standard deviation.

z = ($8400 - $9000) / $900

z = -600 / $900

z = -0.67

Now, we can use the standard normal distribution table to find the percentage associated with the z-score of -0.67.

Looking up the value -0.67 in the standard normal distribution table, we find that the corresponding percentage is approximately 0.2514.

However, since we are interested in the percentage of day care costs that are more than $8400, we need to find the percentage of the area to the right of -0.67.

Since the standard normal distribution is symmetrical, the percentage of the area to the right of -0.67 is equal to 0.5 minus the percentage to the left of -0.67.

0.5 - 0.2514 = 0.2486

Therefore, approximately 24.86% of day care costs are more than $8400 annually.