Assume the room rate for a three star hotel in Paris follows a normal distribution with a

Question:

Assume the room rate for a three star hotel in Paris follows a normal distribution with a mean of 175 euros and a standard deviation of 16 euros.

a. What is the probability that a randomly selected three star hotel has a room rate of

1. Less than 195 euros?

2. More than 180 euros?

3. Exactly 170 euros?

4. Between 150 and 182 euros?

b. Use Excel or PHStat to confirm the answers in part a.

c. A particular hotel would like to set its rate so that only 20% of the hotels in Paris will have lower rates. What room rate should the hotel set?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...