Question No: 1 Given that z is a standard normal random variable, compute the following probabilities.

a) P (- 1.98 ≤ z ≤ .49)
b) P (.52 ≤ z ≤ 1.22)
c) P (- 1.75 ≤ z ≤ - 1.04)

Application:

Question No: 2 The temperature of coffee sold at the Coffee Bean Cafe follows the normal probability
distribution, with a mean of 150 degrees. The standard deviation of this distribution is 5 degrees.

(a) What is the probability that the coffee temperature is between 150 degrees and 154 degrees?

(b) What is the probability that the coffee temperature is more than 164 degrees?

Question No: 3 Given that z is a standard normal random variable, find z for each situation.

a) The area to the left of z is .9750.

b) The area between 0 and z is .4750.
c) The area to the left of z is .7291.
d) The area to the right of z is .1314.
e) The area to the left of z is .6700.
f) The area to the right of z is .3300.

Question No: 4 Given that z is a standard normal random variable, find z for each situation.

a) The area to the left of z is .2119.

b) The area between z and z is .9030.
c) The area between z and z is .2052.
d) The area to the left of z is .9948.
e) The area to the right of z is .6915.

Question No: 5 Given that z is a standard normal random variable, find z for each situation.

a) The area to the right of z is .01.

b) The area to the right of z is .025.
c) The area to the right of z is .05.
d) The area to the right of z is .10.

Applications:

Question No: 6 As part of its quality assurance program, the Autolite Battery Company conducts tests
on battery life. For a particular D-cell alkaline battery, the mean life is 19 hours.

The useful life of the battery follows a normal distribution with a standard deviation of 1.2 hours.
Answer the following questions.

1. About 68 percent of the batteries failed between what two values?

2. About 95 percent of the batteries failed between what two values?

3. Virtually all of the batteries failed between what two values?

Question No: 7 Assume that the mean hourly cost to operate a commercial airplane follows the normal
distribution with a mean of $2,100 per hour and a standard deviation of $250. What is the operating
cost for the lowest 3 percent of the airplanes?

Question No: 8 The SAT Reasoning Test (formerly called the Scholastic Aptitude Test) is perhaps the
most widely used standardized test for college admissions in the United States. Scores are based on a
normal distribution with a mean of 1500 and a standard deviation of 300. Clinton College would like to
offer an honors scholarship to students who score in the top 10 percent of this test. What is the
minimum score that qualifies for the scholarship?

Question No: 9 According to media research, the typical American listened to 195 hours of music in the
last year. This is down from 290 hours four years earlier. Dick Trythall is a big country and western music
fan. He listens to music while working around the house, reading, and riding in his truck. Assume the
number of hours spent listening to music follows a normal probability distribution with a standard
deviation of 8.5 hours.

a. If Dick is in the top 1 percent in terms of listening time, how many hours does he listen per year?

b. Assume that the distribution of times four years earlier also follows the normal probability
distribution with a standard deviation of 8.5 hours. How many hours did the

1 percent who listen to the least music actually listen?

Question No: 10 For the most recent year available, the mean annual cost to attend a private
university in the United States was $26,889. Assume the distribution of annual costs follows the normal
probability distribution and the standard deviation is $4,500. Ninety-five percent of all students at
private universities pay less than what amount?

Question No: 11 In economic theory, a “hurdle rate” is the minimum return that a person
requires before they will make an investment. A research report says that annual returns from a specific
class of common equities are distributed according to a normal distribution with a mean of 12 percent
and a standard deviation of 18 percent. A stock screener would like to identify a hurdle rate such that
only 1 in 20 equities is above that value. Where should the hurdle rate be set?