Styles Assume that monthly reimbursable employee expense in a small hardware sto

Question

Styles Assume that monthly reimbursable employee expense in a small hardware store in Ada is a uniform continuous random variable with possible values between $800 and $1200. 6. What is the average monthly reimbursable employee expense for this small hardware store in Ada? 7. What is the probability that the monthly reimbursable employee expense exceeds $1,075? State your answer with four digits past the decimal. 8. Fifteen percent of the months the reimbursable employee expense exceeds how many dollars?

Explanation / Answer

This is the uniform continous R.V. with a = 800, b = 1200

6. The average montly reimbusable employee expense for thi small Hardware store in Ada

= (800+1200)/2 = $1000

Avg. reimb. emp. exp. = $1000

7. P(X>1075) = ?

(1200-1075)/(1200-800) = 125 / 400 = .3125 .

This ( .3125) is the probability that the monthly reimb. emp. expense eceeds $1,075.

8. 15% of expense exceeds = ?. Let it be c.

So, (c-800)/(1200-800) = 1-.15

c-800 = 400 *.85

c = 800+400*.85 = $1,140

So, 15% of month' reimb. exp. expense exceeds $1,140

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