Question

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night. Suppose that room rates are normally distributed with a standard deviation of $55.

a. What is the possibility that a hotel room costs $225 or more per night?

Solution

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In this task, we will calculate the probability that the value of a normal random variable xx, which has the mean of μ=204\mu=204 and the standard deviation of σ=55\sigma=55, will be greater or equal to 225225.

To be more precise, we will calculate the probability that the value of a normal random variable xx will be inside the interval [225,)\left[225,\infty\right).

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