Question

V. USE THE INFORMATION BELOW TO ANSWER PROBLEMS 16-18 Suppose that long time data shows that average yearly home repair cost to be $5670 per year with a standard deviation of $1701. The data is assumed to be approximately normally distributed. What is the minimum amount of money that a homeowner save to be 90% confident they will have enough money for a year's worth of home repairs? 16 Pick the equation that is most appropriate to answer the question above. a) x = 20 X- b) X- c) d) p(x) = Cxp*q*-* None of the above e) 17. Select the most appropriate item that pertains to the problem. a) 2- 1.9601 b) 2 = 2.326 c) 2 = 2.576 d) 21.645 e) None of the above 18. What would the minimum amount of money a homeowner should save to be 90% confident he/she will have enough money for home repairs? Round to the nearest dollar. $1288 b) $1713 c) $2336 d) $2872 e) None of the above SIL

Answer 1

givendeter M=5670 021701 $16 we have en = ? for P(x<2)=0.90 For individued, oc-4 В Za 9-17 P(OC(Z)=0,90 (From 2 table) 1.2 - 1.282 ..E none of the above (9-18 :.00 = 1+ zo = 5670 + 1.28261701) = 7850.682 !. E none of the above CS Scanned with CamScanner