Watersports Rental at Flathead Lake Rents Jet Skis and Power

question 105

True/False

Watersports Rental at Flathead Lake rents jet skis and power boats for day use. Each piece of equipment has a clock that records the time that it was actually in use while rented. The company has observed over time that the distribution of time used is normally distributed with a mean of 3.6 hours and a standard deviation equal to 1.2 hours. Watersports management has decided to give a rebate to customers who use the equipment for only a short amount of time. They wish to grant a rebate to no more than 10 percent of all customers. Based on the information provided, the amount of time that should be set as the cut-off between getting the rebate and not getting the rebate is approximately 2.06 hours.

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