A Gallup Daily Tracking Survey found that the mean daily discretionary spending by Americans earning over $90,000 per year was $136 per day (USA Today, July 30, 2012). The discretionary spending excluded home purchases, vehicle purchases, and regular monthly bills. Let x = the discretionary spending per day and assume that a uniform probability density function applies with f (x) = 0.00625 for a ≤ x ≤ b. a. Find the values of a and b for the probability density function. b. What is the probability that consumers in this group have daily discretionary spending between $100 and $200? c. What is the probability that consumers in this group have daily discretionary spending of $150 or more?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
icon
Concept explainers
Question

A Gallup Daily Tracking Survey found that the mean daily discretionary spending by Americans earning over $90,000 per year was $136 per day (USA Today, July 30, 2012). The discretionary spending excluded home purchases, vehicle purchases, and regular monthly bills. Let x = the discretionary spending per day and assume that a uniform probability density function applies with f (x) = 0.00625 for a x b.

a. Find the values of a and b for the probability density function.

b. What is the probability that consumers in this group have daily discretionary spending between $100 and $200?

c. What is the probability that consumers in this group have daily discretionary spending of $150 or more?

d. What is the probability that consumers in this group have daily discretionary spending of $80 or less?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Knowledge Booster
Continuous Probability Distribution
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON