The price of a gallon of milk follows a normal distribution with a mean of $3.20 and a standard deviation of $0.10. Find the price for which 12.3% of milk vendors exceeded.
A)$3.238
B)$3.316
C)$3.084
D)$3.215

Question

Quizplus · Accepted Answer

To find the price for which 12.3% of milk vendors exceeded, we need to find the z-score that corresponds to the 87.7th percentile (100% - 12.3%). Using a standard normal distribution table or calculator, the z-score is approximately 1.15. Using the formula: price = mean + (z-score * standard deviation), we get $3.20 + (1.15 * $0.10) = $3.316.

The Price of a Gallon of Milk Follows a Normal