In February 2002 the Argentine peso lost 70% of its value compared to the United
ID: 2958377 • Letter: I
Question
In February 2002 the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased. Suppose the following complete set of results were reported. Use the following data to answer questions 9 through 12.
Number of Products Purchased
Brands Purchased Fewer Same More Total
Same 10 14 24 48
Changed 262 82 8 352
Total 272 96 32 400
15. The average hourly wage of workers at a fast food restaurant is $6.50/hr with a standard deviation of $0.45. Assume that the distribution is normally distributed. If a worker at this fast food restaurant is selected at random, what is the probability that the worker earns more than $6.75? Place your answer, rounded to 4 decimal places, in the blank. ________
Explanation / Answer
15. Solution P(X > 6.75) = P( (X-mu)/sd > (6.75-mu)/sd) = P( Z > (6.75-6.50)/0.45) = P( Z > 0.5555) = 0.2877 or 28.77% approximately