Question

3. A local college is trying to create a new SCHOLARSHIP FUND for freshmen to recruit as many excellent students as they can. The school decided to give a scholarship $5000 cash for any freshmen who have the SAT score higher than 1300. The Admission Office has the following data: 1) About 6000 students are applying the school every year 2) The historical data of applicants' SAT scores is normally distributed with its mean, 950 and standard deviation, 170. Estimate the budget for the new scholarship fund for next year. 4. A top brand of a popular pickup truck's life is normally distributed with its mean, 12 years and standard deviation, 4 years. Suppose that the top executives of the automaker decided that only 1.2 % of new trucks sold could be replaced with a new truck or fully refunded within the warranty period. What should be a desirable warranty period?

Answer 1

AnsH3) Riven, gmn 1950, 1702) PUX1300) = > 1300-950 170 PIZ > 2.058824) p(xy 0.019756 The estionated budget for the new scholarship food for next n year 0.0195756 X 6000 X 5000 $ 592667.2 (4-) to 112 perceottle first, coe waill oftand a z-score corresponding PIZ <2* )= 0.012 Z* = -2.25713 - 4-4--2125713 x= 12 -2 -2 5713X4 = 2.971 years .: Adesirable coamanty period is 2.971 years, 2) 2 CS Scanned with CamScanner