Question: Problem-5 Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work required on leased

 Problem-5 Ward Doering Auto Sales is considering offering a special service

Problem-5 Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed, with a mean of $150 and a standard deviation of $25. a) If the company offers the service contract to customers for a yearly charge of $200, what is the probability that any one customer's service costs will exceed the contract price of $200? b) What is Ward's expected prot per service contract? Problem-6 ls lack of sleep causing trafc fatalities? A study conducted under the auspices of the National Highway Traffic Safety Administration found that the average number of fatal crashes caused by drowsy drivers each year was 1550 (BusinessWeek January 26, 2004). Assume the annual number of fatal crashes per year is normally distributed with a standard deviation of 300. a) What is the probability of fewer than 1000 fatal crashes in a year? b) What is the probability the number of fatal crashes will be between 1000 and 2000 for a year? c) For a year to be in the upper 5% with respect to the number of fatal crashes. how many fatal crashes would have to occur

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