Use the Normal Distribution to Approximate the Desired Probability

question 4

Multiple Choice

Use the normal distribution to approximate the desired probability.
-The prizes that can be won in a sweepstakes are listed below together with the chances of winning each one: $5300 (1 chance in 8600) ; $2500 (1 chance in 5300) ; $700 (1 chance in 3500) ; $200 (1 chance in 2800) . Find the expected value of the amount won for one entry if the cost of entering is 73 cents.

• A)$0.67
• B)$0.63
• C)$1.29
• D)$200

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Definitions:

Hourly Rate

The sum of money received for every hour worked.

Unit Price

The cost per single unit of an item or investment.

Percent Change

The measurement of the relative change of a quantity, expressed as a percentage, to denote increase or decrease from one period to another.

Share Price

The current price of a single share of a company's stock on the market.