Chapter 6

Continuous Probability Distributions

Learning Objectives

1. Understand the difference between how probabilities are computed for discrete and continuous
random variables.

2. Know how to compute probability values for a continuous uniform probability distribution and be
able to compute the expected value and variance for such a distribution.

3. Be able to compute probabilities using a normal probability distribution. Understand the role of the
standard normal distribution in this process.

4. Be able to compute probabilities using an exponential probability distribution.

5. Understand the relationship between the Poisson and exponential probability distributions.

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Chapter 6

Solutions:

1. a.
f (x)

x
.50 1.0 1.5 2.0

b. P(x = 1.25) = 0. The probability of any single point is zero since the area under the curve above
any single point is zero.

c. P(1.0  x  1.25) = (1/.5)(.25) = 2(.25) = .50

d. P(1.20 < x < 1.5) = (1/.5)(.3) = 2(.30) = .60

2. a.
f (x)

.15

.10

.05

x
0 10 20 30 40

b. P(x < 15) = (1/10)(5) = .10(5) = .50

c. P(12  x  18) = (1/10)(6) = .10(6) = .60

10  20
E ( x)   15
d. 2

(20  10) 2
Var( x)   8.33
e. 12

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 Continuous Probability Distributions

3. a.
f (x)

3 / 20

1 / 10

1 / 20

x
110 120 130 140
Minutes

b. P(x  130) = (1/20) (130 - 120) = 0.50

c. P(x > 135) = (1/20) (140 - 135) = 0.25

120  140
E ( x)   130
d. 2 minutes

4. a.
f (x)

1.5

1.0

.5

x
0 1 2 3

b. P(.25 < x < .75) = 1 (.50) = .50

c. P(x  .30) = 1 (.30) = .30

d. P(x > .60) = 1 (.40) = .40

e./f. Answers will vary.

5. a. Length of Interval = 12 – 8.5 = 3.5

ì 1
ï for 8.5 £x £12
f (x) =í 3.5
ï0 elsewhere
î

b.
P(x £10) =(10 - 8.5)(1/ 3.5) =1.5 / 3.5 =.4286

c.
P(x ³ 11) =(12 - 11)(1/ 3.5) =1/ 3.5 =.2857

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Chapter 6

d.
P(9.5 £ x £11.5) =(11.5 - 9.5)(1/ 3.5) =2 / 3.5 =.5714

e.
P(x ³ 9) =(12 - 9)(1/ 3.5) =3 / 3.5 =.8571

100 x (.8571) = 85.71 or rounding, 86 iPad Minis should have a battery life
of at least 9 hours.

ì 1
ï for a £x £ b
f (x) =í b - a
ï 0 elsewhere
6. a. For a uniform probability density function î
1
Thus, b - a = .00625.

Solving for b - a , we have b - a = 1/.00625 = 160

In a uniform probability distribution, ½ of this interval is below the mean and ½ of this interval is
above the mean. Thus,

a = 136 – ½(160) = 56 and b = 136 + ½(160) = 216

b.
P(100 £ x £ 200) =(200 - 100)(.00625) =.6250

c. P(x ³ 150) =(216 - 150)(.00625) =.4125

d.
P(x £ 80) =(80 - 56)(.00625) =.1500

7. a. P(10,000  x < 12,000) = 2000 (1 / 5000) = .40

The probability your competitor will bid lower than you, and you get the bid, is .40.

b. P(10,000  x < 14,000) = 4000 (1 / 5000) = .80

c. A bid of $15,000 gives a probability of 1 of getting the property.

d. Yes, the bid that maximizes expected profit is $13,000.

The probability of winning with the following bids are:

$11000 Bid P(10000<x<11000) = 1000 (1/5000) = .2
$12000 Bid (from part a) = .4
$13000 Bid P(10000<x<13000) = 3000 (1/5000) = .6
$14000 (from part b) = .8
$15000 (from part c) = 1

The Expected Profit for any bid = P(win)* Profit = P(win)*(16000-bid), and therefore:
EP ($11000) = .2*5000 = $1000
EP ($12000) = .4*4000 = $1600
EP ($13000) = .6*3000 = $1800
EP ($14000) = .8*2000 = $1600
EP ($15000) = 1*1000 = $1000
.8.

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 Continuous Probability Distributions

 = 10

70 80 90 100 110 120 130

9. a.

 =5

35 40 45 50 55 60 65

b. .683 since 45 and 55 are within plus or minus 1 standard deviation from the mean of 50 (Use the
table or see characteristic 7a of the normal distribution).

c. .954 since 40 and 60 are within plus or minus 2 standard deviations from the mean of 50 (Use the
table or see characteristic 7b of the normal distribution).

10.

-3 -2 -1 0 +1 +2 +3

These probabilities can be obtained using Excel’s NORM.S.DIST function or the standard normal
probability table in the text.

a. P(z  1.5) = .9332 = NORM.S.DIST(1.5,TRUE)

b. P(z  1.0) = .8413 = NORM.S.DIST(1,TRUE)

c. P(1  z  1.5) = P(z  1.5) - P(z < 1) = .9932 - .8413 = .0919

OR = NORM.S.DIST(1.5,TRUE) - NORM.S.DIST(1,TRUE) = .0918

d. P(0 < z < 2.5) = P(z < 2.5) - P(z  0) = .9938 - .5000 = .4938
OR = NORM.S.DIST(2.5,TRUE) - NORM.S.DIST(0,TRUE)

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Chapter 6

11. These probabilities can be obtained using Excel’s NORM.S.DIST function or the standard normal
probability table in the text.

a. P(z  -1) = .1587 = NORM.S.DIST(-1,TRUE)

b. P(z ≥ -1) = 1 - P(z < -1) = 1 - .1587 = .8413 = 1 - NORM.S.DIST(-1,TRUE)

c. P(z ≥ -1.5) = 1 - P(z < -1.5) = 1 - .0668 = .9332 = 1 - NORM.S.DIST(-1.5,TRUE)

d. P(-2.5 ≤ z) = 1 - P(z < -2.5) = 1 - .0062 = .9938 = 1 - NORM.S.DIST(-2.5,TRUE)

e. P(-3 < z ≤ 0) = P(z ≤ 0) - P(z ≤ -3) = .5000 - .0013 = .4987

OR = NORM.S.DIST(0,TRUE) - NORM.S.DIST(-3,TRUE)

12. These probabilities can be obtained using Excel’s NORM.S.DIST function or the standard normal
probability table in the text.

a. P(0 ≤ z ≤ .83) = P(z < .83) – P(z < 0) = .7967 - .5000 = .2967
OR = NORM.S.DIST(.83,TRUE) - NORM.S.DIST(0,TRUE)

b. P(-1.57 ≤ z ≤ 0) = P(z < 0) – P(z < -1.57) = .5000 - .0582 = .4418

OR = NORM.S.DIST(0,TRUE) - NORM.S.DIST(-1.57,TRUE)

c. P(z > .44) = 1 – P(z < .44) = 1 - .6700 = .3300 = 1 - NORM.S.DIST(.44,TRUE)

d. P(z ≥ -.23) = 1 – P(z < -.23) = 1 - .4090 = .5910 = 1 - NORM.S.DIST(-.23,TRUE)

e. P(z < 1.20) = .8849 = NORM.S.DIST(1.2,TRUE)

f. P(z ≤ -.71) = .2389 = NORM.S.DIST(-.71,TRUE)

13. These probabilities can be obtained using Excel’s NORM.S.DIST function or the standard normal
probability table in the text.

a. P(-1.98  z  .49) = P(z  .49) - P(z < -1.98) = .6879 - .0239 = .6640
OR = NORM.S.DIST(.49,TRUE) - NORM.S.DIST(-1.98,TRUE) = .6641

b. P(.52  z  1.22) = P(z  1.22) - P(z < .52) = .8888 - .6985 = .1903
OR = NORM.S.DIST(1.22,TRUE) - NORM.S.DIST(.52,TRUE)

c. P(-1.75  z  -1.04) = P(z  -1.04) - P(z < -1.75) = .1492 - .0401 = .1091
OR = NORM.S.DIST(-1.04,TRUE) - NORM.S.DIST(-1.75,TRUE)

14. These z values can be obtained using Excel’s NORM.S.INV function or by using the standard
normal probability table in the text.

a. The z value corresponding to a cumulative probability of .9750 is z = 1.96. = NORM.S.INV(.975)

b. Since the area to the left of z=0 is .5, the z value here also corresponds to a cumulative
probability of .9750: z = 1.96. NORM.S.INV(.975)

c. The z value corresponding to a cumulative probability of .7291 is z = .61. = NORM.S.INV(.7291)

d. Area to the left of z is 1 - .1314 = .8686. So z = 1.12. NORM.S.INV(.8686)

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 Continuous Probability Distributions

e. The z value corresponding to a cumulative probability of .6700 is z = .44. NORM.S.INV(.67)

f. The area to the left of z is .6700. So z = .44. NORM.S.INV(.67)

15. These z values can be obtained using Excel’s NORM.S.INV function or by using the standard
normal probability table in the text.

a. The z value corresponding to a cumulative probability of .2119 is z = -.80. NORM.S.INV(.2119)

b. Compute .9030/2 = .4515; z corresponds to a cumulative probability of .5000 + .4515 = .9515. So z
= 1.66. NORM.S.INV(.9515)

c. Compute .2052/2 = .1026; z corresponds to a cumulative probability of .5000 + .1026 = .6026. So z

= .26. NORM.S.INV(.6026)

d. The z value corresponding to a cumulative probability of .9948 is z = 2.56. NORM.S.INV(.9948)

e. The area to the left of z is 1 - .6915 = .3085. So z = -.50. NORM.S.INV(.3085)

16. These z values can be obtained using Excel’s NORM.S.INV function or the standard normal
probability table in the text.
a. The area to the left of z is 1 - .0100 = .9900. The z value in the table with a cumulative probability
closest to .9900 is z = 2.33. NORM.S.INV(.99)

b. The area to the left of z is .9750. So z = 1.96. NORM.S.INV(.975)

c. The area to the left of z is .9500. Since .9500 is exactly halfway between .9495 (z = 1.64) and .
9505(z = 1.65), we select z = 1.645. However, z = 1.64 or z = 1.65 are also acceptable answers.
NORM.S.INV(.95)

d. The area to the left of z is .9000. So z = 1.28 is the closest z value. NORM.S.INV(.9)

17.  = 385 and  = 110

x - m 550 - 385
z= = =1.50
a. s 110

P (x ³ 550) = P (z ³ 1.50) = 1 - P
(z £1.50) = 1 - .9332 = .0668

The probability that a domestic airfare will cost $550 or more is .0668.

Using Excel: 1 – NORM.DIST(550,385,110,TRUE) = .0668

x - m 250 - 385
z= = =- 1.23
b. s 110

P
(x £ 250) = P (z £- 1.23) = .1093

The probability that a domestic airfare will cost $250 or less is .1093.

Using Excel: NORM.DIST(250,385,110,TRUE) = .1099

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Chapter 6

x - m 500 - 385
z= = =1.05
c. For x = 500, s 110
x - m 300 - 385
z= = =- .77
For x = 300, s 110

P(300 £ x £ 500) = P(-.77 < z < 1.05) = P (z £1.05) - P (z £ - .77) = .8531 - .2206 = .
6325

The probability that a domestic airfare will cost between $300 and $500 is .6325.

Using Excel: NORM.DIST(500,385,110,TRUE) – NORM.DIST(300,385,110,TRUE) = .6323

d. The upper 3%, or area = 1- .03 =.97 occurs for z =1.88

x    z = 385 + 1.88(110) = $592

For an airfare to be in the upper 3% it must be $592 or more.

Using Excel: NORM.INV(.97,385,110) = 592

18.  = 14.4 and  = 4.4

20  14.4
z  1.27
a. At x = 20, 4.4

P(z  1.27) = .8980

P(x  20) = P( z > 1.27) = 1 – P(z < 1.27) = 1 - .8980 = .1020

Using Excel: 1-NORM.DIST(20,14.4,4.4,TRUE) = .1016

10  14.4
z  1.00
b. At x = 10, 4.4

P(z ≤ -1.00) = .1587

So, P(x  10) = .1587

Using Excel: 1-NORM.DIST(10,14.4,4.4,TRUE) = .1587

c. A z-value of 1.28 cuts off an area of approximately 10% in the upper tail.

x = 14.4 + 4.4(1.28) = 20.03

A return of 20.03% or higher will put a domestic stock fund in the top 10%

Using Excel: 1-NORM.INV(.9,14.4,4.4) = 20.0388 or 20.04%

19. a. μ = 367 and σ = 88.

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 Continuous Probability Distributions

x - m 450 - 367
z= = =.94
s 88

P(x >450) =P(z >.94) =1- P(z £.94) =1- .8264 =.1736

The probability that the cost will be more than $450 is .1736.

Using Excel: 1-NORM.DIST(450,367,88,TRUE) = .1728

x - m 250 - 367
z= = = - 1.33
b. s 88
P(x £250) =P(z £ - 1.33) =.0918
The probability that the cost will be less than $250 is .0918.

Using Excel: NORM.DIST(250,367,88,TRUE) = .0918

c. P (250  x  450)  P( x  450)  P( x  250) 

P(z £ .94) - P(z £ - 1.33) =.8264 - .0918 =.7346
The probability that the cost will be between $250 and $450 is .7346.

Using Excel: NORM.DIST(450,367,88,TRUE) - NORM.DIST(250,367,88,TRUE) = .7354

d. Lower 5% occurs for z = -1.645

x  z  367  1.645(88)  $222.24
For a car repair in the lower 5%, the cost must be $222.24 or less.

Using EXCEL: NORM.INV(.05,367, 88) = $222.25

20. a. United States:   3.73   .25

3.5  3.73
z  .92
At x = 3.50, .25

P(z < -.92) = .1788

So, P(x < 3.50) = .1788

Using Excel: NORM.DIST(3.5,3.73,.25,TRUE) = .1788

Russia:   3.40   .20

b.

3.50  3.40
z  .50
At x = 3.50, .20

P(z < .50) = .6915

So, P(x < 3.50) = .6915

Using Excel: NORM.DIST(3.5,3.40,.20,TRUE) = .6915

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Chapter 6

69.15% of the gas stations in Russia charge less than $3.50 per gallon.

c. Use mean and standard deviation for Russia.

3.73  3.40
z  1.65
At x = 3.73, .20

P ( z  1.65)  1  P( z  1.65)  1  .9505  .0495

P( x  3.73)  .0495

Using Excel: 1-NORM.DIST(3.73,3.40,.20,TRUE) = .0495

The probability that a randomly selected gas station in Russia charges more than the mean price in
the United States is .0495. Stated another way, only 4.95% of the gas stations in Russia charge more
than the average price in the United States.

21. From the normal probability tables, a z-value of 2.05 cuts off an area of approximately .02 in the
upper tail of the distribution.

x =  + z = 100 + 2.05(15) = 130.75

Using Excel: NORM.INV(.98,100,15) = 130.8

A score of 131 or better should qualify a person for membership in Mensa.

22. Use  = 8.35 and  = 2.5

a. We want to find P(5 ≤ x ≤10)

At x = 10,
x   10  8.35
z   .66
 2.5

At x = 5,
x   5  8.35
z   1.34
 2.5

P(5 ≤ x ≤ 10) = P(-1.34 ≤ z ≤ .66)= P(z ≤ .66) - P(z ≤ -1.34)

= .7454 - .0901
= .6553

Using Excel: NORM.DIST(10,8.35,2.5,TRUE) – NORM.DIST(5,8.35,2.5,TRUE) = .6553

The probability of a household viewing television between 5 and 10 hours a day is .6553.

b. Find the z-value that cuts off an area of .03 in the upper tail. Using a cumulative probability of
1 - .03 = .97, z = 1.88 provides an area of .03 in the upper tail of the normal distribution.

x =  + z = 8.35 + 1.88(2.5) = 13.05 hours

Using Excel: NORM.INV(.97,8.35,2.5) = 13.0520

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 Continuous Probability Distributions

A household must view slightly over 13 hours of television a day to be in the top 3% of television
viewing households.

x   3  8.35
z   2.14
c. At x = 3,  2.5

P(x>3) = P(z > -2.14) = 1 - P(z< -2.14) = 1 - .0162 = .9838

Using Excel: 1-NORM.DIST(3,8.35,2.5) = .9838

The probability a household views more than 3 hours of television a day is .9838.

60  80
z  2
23. a. 10 P(x < 60) = P(z ≤ -2) = .0228. So P(x < 60) = .0228

Using Excel: NORM.DIST(60,80,10,TRUE) =.0228

b. At x = 60
60  80
z  2
10 Area to left is .0228

At x = 75
75  80
z  .5
10 Area to left is .3085

P(60  x  75) = P(-2 < z < -.5) = P(z < -.5) – P(z < -2) = .3085 - .0228 = .2857

Using Excel: NORM.DIST(75,80,10,TRUE)-NORM.DIST(60,80,10,TRUE) =.2858

90  80
z 1
c. 10 P(x > 90) = P(z >1) = 1 – P(z < 1) = 1-.8413 = .1587

Using Excel: 1-NORM.DIST(90,80,10,TRUE) =.1587

Therefore 15.87% of students will not complete on time.

(60) (.1587) = 9.522

We would expect 10 students to be unable to complete the exam in time.

24.  = 749 and  = 225

x - m 400 - 749
z= = =- 1.55
a. s 225

P (x < 400) = P
(z < - 1.55) = .0606

The probability that expenses will be less than $400 is .0606.

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Chapter 6

Using Excel: NORM.DIST(400,749,225,TRUE) = .0604

x - m 800 - 749
z= = =.23
b. s 225

P
(x ³ 800) = P (z ³ .23) = 1 - P (z £.23) = 1 - .5910 = .4090

The probability that expenses will be $800 or more is .4090.

Using Excel: 1-NORM.DIST(800,749,225,TRUE) = .4103

x - m 1000 - 749
z= = =1.12
c. For x = 1000, s 225
x - m 500 - 749
z= = =- 1.11
For x = 500, s 225

P(500 £ x £ 1000) = P(-1.11 < z < 1.12) = P (z £1.12) - P (z £ - 1.11) = .8686

- .1335 = .7351

The probability that expenses will be between $500 and $1000 is .7351.

Using Excel: NORM.DIST(1000,749,225,TRUE) – NORM.DIST(500,749,225,TRUE) = .7335

d. The upper 5%, or area = 1- .05 =.95 occurs for z =1.645

x    z = 749 + 1.645(225) = $1119

The 5% most expensive travel plans will be slightly more than $1119 or higher.

Using Excel: NORM.INV(.95,749,225) = 1119.0921

25.  = 204 and  = 55

x - m 225 - 204
z= = =.38
a. s 55

P
(x ³ 225) = P (z ³ .38) = 1 - P (z £ .38) = 1 - .6480 = .3520

The probability that the hotel room will cost $225 or more is .3520.

Using Excel: 1-NORM.DIST(225,204,55,TRUE) = .3513

x - m 140 - 204
z= = =- 1.16
b. s 55

P
(x < 140) = P (z < - 1.16) = .1230

The probability that the hotel room will cost less than $140 is .1230.

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 Continuous Probability Distributions

Using Excel: NORM.DIST(140,204,55,TRUE) = .1223

x - m 300 - 204
z= = =1.75
c. For x = 300, s 55
x - m 200 - 204
z= = =- .07
For x = 200, s 55

P(200 £ x £ 300) = P (z £1.75) - P (z £ - .07) = .9599 - ..4721 = .4878

The probability that the hotel room will cost between $200 and $300 is .4878.

Using Excel: NORM.DIST(300,204,55,TRUE) – NORM.DIST(200,204,55,TRUE) = .4885

d. The upper 20%, or area = 1- .20 =.80 occurs for z =.84

x    z = 204 + .84(55) = $250.20

The 20% most expensive hotel rooms will cost slightly more than $250 or more per night.

Using Excel: NORM.INV(.80,204,55,TRUE) = 250.2892

26. =8

a. P(x  6) = 1 - e-6/8 = 1 - .4724 = .5276

Using Excel: EXPON.DIST(6,1/8,TRUE) = .5276

b. P(x  4) = 1 - e-4/8 = 1 - .6065 = .3935

Using Excel: EXPON.DIST(4,1/8,TRUE) = .3935

c. P(x  6) = 1 - P(x  6) = 1 - .5276 = .4724

Using Excel: =1-EXPON.DIST(6,1/8,TRUE) = .4724

d. P(4  x  6) = P(x  6) - P(x  4) = .5276 - .3935 = .1342

Using Excel: EXPON.DIST(6,1/8,TRUE)-EXPON.DIST(4,1/8,TRUE) = .1342

27. =3

a. P( x  x0 )  1  e  x0 / 3

b. P(x  2) = 1 - e-2/3 = 1 - .5134 = .4866

Using Excel: EXPON.DIST(2,1/3,TRUE) = .4866

3/ 3
c. P(x  3) = 1 - P(x  3) = 1 - (1 - e ) = e-1 = .3679

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Chapter 6

Using Excel: =1-EXPON.DIST(3,1/3,TRUE) = .3679

d. P(x  5) = 1 - e-5/3 = 1 - .1889 = .8111

Using Excel: EXPON.DIST(5,1/3,TRUE) = .8111

e. P(2  x  5) = P(x  5) - P(x  2) = .8111 - .4866 = .3245

Using Excel: EXPON.DIST(5,1/3,TRUE)-EXPON.DIST(2,1/3,TRUE) = .3245

1  x / 20
f ( x)  e
28. a. With  20

 x/ 
b. P(x ≤ 15) = 1  e  1  e 15/20 = .5276 = EXPON.DIST(15,1/20,TRUE)

c. P( x > 20) = 1 - P(x ≤ 20)

20/20
= 1 - (1 - e
1
) = e  .3679 = 1 - EXPON.DIST(20,1/20,TRUE)

1  x /7
f ( x)  e
d. With  7

P( x  5)  1  e  x /   1  e 5/7  .5105 = EXPON.DIST(5,1/7,TRUE)

29. a.
f(x)
.09
.08
.07
.06
.05
.04
.03
.02
.01
x
6 12 18 24

 = 12

b. P(x  12) = 1 - e-12/12 = 1 - .3679 = .6321

Using Excel: EXPON.DIST(12,1/12,TRUE) = .6321

c. P(x  6) = 1 - e-6/12 = 1 - .6065 = .3935

6 - 14
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 Continuous Probability Distributions

Using Excel: EXPON.DIST(6,1/12,TRUE) = .3935

d. P(x  30) = 1 - P(x < 30)

= 1 - (1 - e-30/12)
= .0821

Using Excel: =1-EXPON.DIST(30,1/12,TRUE) = .0821

30. =2
1  x/  1  x/ 2
f ( x)  e  e
a.  2 for x > 0

 x0 / 
P(x < x0) = 1  e

1/ 2 .5
P(x < 1) = 1  e = 1  e  1 - .6065 = .3935 = EXPON.DIST(1,1/2,TRUE)

2/ 2 1.0
b. P(x < 2) = 1  e = 1  e  1 - .3679 = .6321

P(1  x  2)  P( x  2)  P( x  1) = .6321 - .3935 = .2386

= EXPON.DIST(2,1/2,TRUE) – EXPON.DIST(1,1/2,TRUE) = .2387

c. For this customer, the cable service repair would have to take longer than 4 hours.

P ( x  4)  1  P( x  4) = 1 (1  e 4/ 2 )  e 2.0  .1353 = 1 - EXPON.DIST(4,1/2,TRUE)

31.  = 2.2
1 1  x / 2.2
f ( x)  e  x /   e
a.  2.2 for x > 0

 x0 /   x0 / 2.2
P(x < x0) = 1  e = 1 e

1/ 2.2
P(x < 1) = 1  e  1  e .4545  1 - .6347 = .3653 = EXPON.DIST(1, 1/ 2.2,TRUE)

b. P(x ≤) = (1 - e-.5/2.2) = .2033

P( .5 ≤ x ≤ 1) = P(x  1) - P(x  .5) = .3653 - .2033 = .1620

= EXPON.DIST(1,1/2.2,TRUE) - EXPON.DIST(.5, 1/ 2.2,TRUE)
c. P(x > 5) = 1 – P(x ≤ 5) = 1 – (1 - e-5/2.2) = e-2.2727 = .1030 = 1 - EXPON.DIST(5, 1/ 2.2,TRUE)

The probability that the service time exceeds five minutes is .1030. Hence there is a 10.3% chance of
exceeding five minutes. The manager might want to reconsider this and choose a larger service time
cutoff that results in a smaller chance of getting free food.

32. a. Because the number of calls per hour follows a Poisson distribution, the time between calls follows
an exponential distribution. So,

for a mean of 1.6 calls per hour, the mean time between calls is
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Chapter 6

60 minutes/hour
m= =37.5 minutes
1.6 calls/hour per call

æ 1 ö - x/37.5
ç ÷e
b. The exponential probability density function is f (x) = è 37.5 ø for x³0
where x is the minutes between 911 calls.

c. Using time in minutes,

( )
P x < 60 =1- e- 60/37.5 =1- .2019 =.7981
= EXPON.DIST(60, 1/ 37.5,TRUE)

d.
( )
P(x ³ 30) =1- P x £ 30 =1- (1- e- 30/37.5 ) =1- .5507 =.4493
= 1- EXPON.DIST(30, 1/ 37.5,TRUE)

P  5  x  20   (1  e 20/37.5 )  (1  e5/37.5 )  .4134  .1248  .2885

e.
EXPON.DIST(20, 1/ 37.5,TRUE - EXPON.DIST(5, 1/ 37.5,TRUE) = .2885

33. a. Let x = sales price ($1000s)

1
 for 200  x  225
f ( x)   25
 0 elsewhere


b. P(x  215) = (1 / 25) (225 - 215) = 0.40

c. P(x < 210) = (1 / 25)(210 - 200) = 0.40

d. E (x) = (200 + 225)/2 = 212,500

If she waits, her expected sale price will be $2,500 higher than if she sells it back to her company
now. However, there is a 0.40 probability that she will get less. It’s a close call. But, the expected
value approach to decision making would suggest she should wait.

34. μ = 19000 and σ = 2100

a. Find the z value that cuts off an area of .10 in the lower tail.

From the standard normal table z ≈ -1.28. Solve for x,

x  19, 000
z  1.28 
2100

x = 19,000 – 1.28(2100) = 16,312

10% of athletic scholarships are valued at $16,312 or less.

Using Excel: NORM.INV(.90,19000,2100) = 16,308.74

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 Continuous Probability Distributions

x   22,000  19, 000

z   1.43
b.  2100

P(x ≥ 22,000) = P( z > 1.43) = 1 – P(z ≤ 1.43) = 1 - .9236 = .0764

7.64% of athletic scholarships are valued at $22,000 or more.

Using Excel: 1-NORM.DIST(22000,19000,2100,TRUE) = .0766

c. Find the z value that cuts off an area of .03 in the upper tail: z = 1.88. Solve for x,

x  19, 000
z  1.88 
2100

x = 19,000 + 1.88(2100) = 22,948

3% of athletic scholarships are valued at $22,948 or more.

Using Excel: NORM.INV(.97,19000,2100) = 22,949.6666

35. a. μ = 10 and σ = .15

P(defect) = 1 - P(9.85  x  10.15) , with σ = .15, z = +/- 1

= 1 - P(-1  z  1) = 1 - .6826 = .3174

1 – [NORM.DIST(10.15,10,.15,TRUE) - NORM.DIST(9.85,10,.15,TRUE)] = .3173

Expected number of defects = 1000(.3174) = 317.4

b. μ = 10 and σ = .05
P(defect) = 1 - P(9.85  x  10.15) , with σ = .05, z = +/- 3

= 1 - P(-3  z  3) = 1 - .9974 = .0026

1 – [NORM.DIST(10.15,10,.05,TRUE) - NORM.DIST(9.85,10,.05,TRUE)] = .0027

Expected number of defects = 1000(.0026) = 2.6

c. Reducing the process standard deviation causes a substantial reduction in the number of defects.

36.  = 658

a. z = -1.88 cuts off .03 in the lower tail

So,

610  658
z  1.88 

610  658
  25.5319
1.88

Using EXCEL: NORM.S.INV(.03), z = -1.8807936, solving for σ without rounding, gives 25.5211

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Chapter 6

x   700  658
z   1.65
b. At 700,  25.5319

x   600  659
z   2.31
At 600,  25.5319

P(600 < x < 700) = P(-2.31 < z < 1.65) = P(z < 1.65) – P(z < -2.31) = .9505 - .0104 = .9401

Using Excel: NORM.DIST(700,658,25.5211,TRUE) –NORM.DIST(600,658,25.5211,TRUE) = .9386

c. z = 1.88 cuts off approximately .03 in the upper tail

x = 658 + 1.88(25.5319) = 706.

Using Excel: NORM.INV(.97,658,25.5211) = 706

On the busiest 3% of days 706 or more people show up at the pawnshop.

37. μ = 4.5 and σ = .82

a. z = 5 - 4.5 = .61 P(x < 5) = P(z < .61) = .7291

.82
Using Excel: NORM.DIST(5,4.5,.82,TRUE) = .7290

b. z = 3 - 4.5 = -1.83 P(x > 3) = P(z > -1.83) = 1 - P(z < -1.83) = 1 - .0336 = .9664
.82
Using Excel: 1 - NORM.DIST(3,4.5,.82,TRUE) = .9663

c. z = 4 - 4.5 = -.61 P(3 < x < 4)= P(-1.83 < z < -.61)= P(z < -.61) -P(z < -1.83) =.2709 -.0336=.2373
.82
Using Excel: NORM.DIST(4,4.5,.82,TRUE) - NORM.DIST(3,4.5,.82,TRUE) = .2373

d. The area to the left of z is .8500. So z = 1.04 is the closest z value.

x    z = 4.5 + 1.04(.82) = 5.3528
Using Excel: NORM.INV(.85,4.5,.82) = 5.3499
Anything in excess of 5.35 million tons will require an extension of hours.

38. a. At x = 200
200  150
z 2
25

P(x > 200) = P(z > 2) = 1 - P(z ≤ 2) = 1 - .9772 = .0228 = 1 - NORM.DIST(200,150,25,TRUE)

b. Expected Profit = Expected Revenue - Expected Cost

= 200 - 150 = $50

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 Continuous Probability Distributions

39. a.  = 29,858  = 5600

a. At x = 20,000
x - m 20,000 - 29,858
z= = =- 1.76
s 5600

P(x < 20,000) = P(z < -1.76) = .0392 = NORM.DIST(20000,29858,5600,TRUE)

b. At x = 30,000
30,000 - 29,858
z= =.03
5600

P(x < 30,000) = P(z < .03) = .5120

P(x < 20,000) = .0392 (from part a)

P(20,000 < x < 30,000) = P(-1.76 < z < .03) = P(z < .03) – P(z < -1.76) = .5120 - .0392 = .4728

Using Excel: NORM.DIST(30000,29858,5600,TRUE) - NORM.DIST(20000,29858,5600,TRUE)

= .4709
c. Find the z value that cuts off an area of .05 in the upper tail: z = 1.645

Solve for x,
x - 29,858
1.645 =
5600
x = 29,858 + 1.645(5600) = 39,070 Using Excel: NORM.INV(.95,29858,5600) = 39069

A wedding cost of $39,070 or more would put a wedding among the 5% most expensive.

40. μ = 450 and σ = 100

a. At 400,
400  450
z  .500
100
Area to left is .3085 At
500,
500  450
z  .500
100
Area to left is .6915

P(400  x  500) = P(-.5 < z < .5) = P(z < .5) – P(z < -.5) = .6915 - .3085 = .3830
Using Excel: NORM.DIST(500,450,100,TRUE) - NORM.DIST(400,450,100,TRUE) = .3829

38.3% will score between 400 and 500.

b. At 630,
630  450
z  1.80
100

Probability of worse than 630 = P( x < 630) = P(z < 1.8) =.9641
Using Excel: NORM.DIST(630,450,100,TRUE) = .9641

Probability of better than 630 = P( x > 630) = P(z > 1.8) = 1- P(z < 1.8) = 1 - .9641 = .0359
Using Excel: 1 - NORM.DIST(630,450,100,TRUE) = 1 - .9641 = .0359

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Chapter 6

96.41% do worse and 3.59% do better .

c. At 480,
480  450
z  .30
100
Area to left is .6179
Probability of admittance = P( x > 480) = P(z > .3) = 1- P(z < .3) = 1 - .6179 = .3821
Using Excel: 1 - NORM.DIST(480,450,100,TRUE) = 1 - .6179 = .3821

38.21% are acceptable.

41. For part a: μ = 53901 and σ = 15000

a. At x = 65,000
65,000 - 53,901
z= =.74
15,000

P(x > 65,000) = P(z > .74) = 1 - P(z  .74) = 1 - .7704 = .2296
The probability of a business graduate having a starting salary more than $65,000 is .2296.
Using Excel: 1 - NORM.DIST(65000,53901,15000,TRUE) = .2297

For parts b, c,and d: μ = 51541 and σ = 11000

b. At x = 65,000
65,000 - 51,541
z= =1.22
11,000

P(x > 65,000) = P(z > 1.22) = 1 - P(z  1.22) = 1 - .8888 = .1112

The probability of a health science graduate having a starting salary more than $65,000 is .1112
Using Excel: 1 - NORM.DIST(65000,51541,11000,TRUE) = .1106

c. At x = 40,000
40,000 - 51,541
z= =- 1.05
11,000

P(x < 40,000) = P(z < -1.05) = .1469

The probability of a health science graduate having a starting salary $40,000 or less is .1469.
Using Excel: NORM.DIST(40000,51541,11000,TRUE) = .1470

d. The answer to this is the health science starting salary that cuts off an area of .01 in the upper tail of
the distribution for health science graduate starting salaries.

Use z = 2.33

x = 51,541 + 2.33(11,000) = 77,171

Using Excel: NORM.INV(.99,51541,11000) = 77130.8266

A business graduate would have to obtain a starting salary of at least $77,171 (or 77130.83) to have
a starting salary higher than 99% of all starting salaries for new college graduates with a major in
health sciences.

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 Continuous Probability Distributions

42.  = .6

At 2%
z ≈ -2.05 x = 18

x 18  
z  2.05 
 .6

 = 18 + 2.05 (.6) = 19.23 oz.

0.02

18  =19.23

The mean filling weight must be 19.23 oz.

43.  = 1.8
a. P(x < 1) = 1 - e-1/1.8 = .4262
Using Excel: P(x <= 1) = EXPON.DIST(1,1/1.8,TRUE) = .4262

b. P(x > 2) = 1 - P(x < 2) = 1 - [1 - e-2/1.8] = e-2/1.8 = .3292

Using Excel: P(x > 2) = 1 - EXPON.DIST(1,1/1.8,TRUE) = 1 - .6708 = .3292

44. a. Mean time between arrivals = 1/7 minutes

b. f(x) = 7e-7x

c. P(no one in 1 minute) = P(greater than 1 minute between arrivals) =

P(x > 1) = 1 - P(x < 1) = 1 - [1 - e-7(1)] = e-7 = .0009
= 1 - EXPON.DIST(1,1/(1/7),TRUE) = 1-EXPON.DIST(1,7,TRUE) = .0009
Note using Poisson via Excel gives: POISSON.DIST(0,7,TRUE) = .0009

d. 12 seconds is .2 minutes, or 1/5 of a minute, therefore poisson mean = 7/5 per 12 seconds = 1.4

Using exponential, P(no one in 12 seconds = P(greater than 12 seconds between arrivals) =
P(x > .2) = 1 - P(x < .2) = 1- [1- e-7(.2)] = e-1.4 = .2466
= 1 - EXPON.DIST(.2,1/(1/7),TRUE) = 1-EXPON.DIST(.2,7,TRUE) = .2466
Note using Poisson via Excel gives: POISSON.DIST(0,7/5,TRUE) = .2466

45.  = 26
1 x/ 1  x / 26
f ( x)  e  e
a.  26 for x > 0

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Chapter 6

 x0 / 
b. P(x < x0) = 1  e

30/ 26
P(x < 30) = 1  e  1 - .3154= .6846

15/ 26
P(x < 15) = 1  e  1 - .5932 = .4384

P(15 < x < 30) = P(x < 30) - P(x < 15) = .6846 - .4384 = .2462
= EXPON.DIST(30,1/26,TRUE) - EXPON.DIST(15,1/26,TRUE)

c. P(x > 120) = 1 - P(x < 120) =

1  (1  e 120/ 26 )  e 120/ 26  .0099 = 1- EXPON.DIST(120,1/26,TRUE)
There is less than a one percent chance of waiting more than two minutes.

1
 0.5
46. a.  therefore  = 2 minutes = mean time between telephone calls

b. Note: 30 seconds = .5 minutes

P(x  .5) = 1 - e-.5/2 = 1 - .7788 = .2212 = EXPON.DIST(.5,1/2,TRUE)

c. P(x  1) = 1 - e-1/2 = 1 - .6065 = .3935 = 1 - EXPON.DIST(1,1/2,TRUE)

d. P(x  5) = 1 - P(x < 5) = 1 - (1 - e-5/2) = .0821 = 1 - EXPON.DIST(5,1/2,TRUE)

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