Assignment:
The average annual amount American households spend for daily transportation is $6313.6 (Money, August 2001). Assume that the amount spent is normally distributed.
a. Suppose you learn that 5.05% of American households spend less than $1000 for daily transportation. What is the standard deviation of the amount spent?
b. What is the probability that a household spends between $4000 and $6000?
c. What is the amount spent by 3% of households with the highest daily transportation cost?
d. If the number of households in c) is 5250, how many households were surveyed?
Provide complete and step by step solution for the question and show calculations and use formulas.