Asked by Celeste Tidwell on Jul 21, 2024
Verified
The results of a recent survey showed that the average cost to rent a car for a week is $276.If the standard deviation is $60,find the z-score for a weekly rental of $423.00?
A) 7.05
B) 2.45
C) 4.6
D) -1.88
Standard Deviation
A statistic that measures the dispersion or variation of a set of values, indicating how much the values differ from the mean of the set.
Z-score
A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.
Average Cost
A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the weighted average of all purchases.
- Calculate z-scores using mean and standard deviation.
Verified Answer
GS
Gurcharan Singh
Jul 25, 2024
Final Answer :
B
Explanation :
We can use the formula for z-score:
z = (x - μ) / σ
where:
x = rental cost ($423)
μ = mean rental cost ($276)
σ = standard deviation ($60)
Substituting the values:
z = (423 - 276) / 60
z = 2.45
Therefore, the z-score for a weekly rental of $423.00 is 2.45, which is closest to choice B (2.45).
z = (x - μ) / σ
where:
x = rental cost ($423)
μ = mean rental cost ($276)
σ = standard deviation ($60)
Substituting the values:
z = (423 - 276) / 60
z = 2.45
Therefore, the z-score for a weekly rental of $423.00 is 2.45, which is closest to choice B (2.45).
Learning Objectives
- Calculate z-scores using mean and standard deviation.