Suppose the amount of propane needed to fill a customer’s tank is a random variable with a mean of 323 gallons and a standard deviation of 36 gallons. Hank Hill is considering two pricing plans for propane.

Plan A would charge $2.05 per gallon.

Plan B would charge a flat rate of $50 plus $1.8 per gallon.

Round all answers to 2 decimal places where appropriate.

a. Calculate the mean and standard deviation of the distribution of money earned on Plan A.

 μ=\displaystyle \mu= $

 σ=\displaystyle \sigma= $


b. Calculate the mean and standard deviation of the distribution of money earned on Plan B.

μ=\displaystyle \mu= $

σ=\displaystyle \sigma= $


c. Assuming the distributions are normal, calculate the probability that Plan B would charge more than Plan A.


P (B > A) =

 

 

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