College costs have risen dramatically over the past few decades. For the 2014/20
ID: 2927058 • Letter: C
Question
College costs have risen dramatically over the past few decades. For the 2014/2015 school year, the average tuition costs, including room and board, at four-year institutions was $23,600 per year. The standard deviation for those tuition costs was $6,023, and this tuition data seems to follow a normal probability distribution. Find the tuition cost separating the most expensive three percent of schools from the rest of them. (Use the Z value in the standard normal table that is closest to the required probability. Do not round any other intermediate calculations. Enter your answer as a decimal rounded to two places)
Explanation / Answer
Mean is 23600 and s is 6023
We need to find a value at 1-0.03 or 0.97 or 97% above the lowest value
this means P(x<X)=0.97
from normal distribution table we get the z value as 1.88
thus x=23600+1.88*6023=34923.24