According to the IRS the mean tax refund for the year 2009 w
According to the IRS the mean tax refund for the year 2009 was $3333.
The standard deviation of the population of returns is $551, and the amounts follow the normal distribution. Using Normal Distribution.
Solution
Mean = u = 3333
SD = 551
a) More than 2000 :
x = 2000
z = (x - u) / SD
z = (2000 - 3333) / 551
z = -2.4192377495462795
P(z > -2.4192377495462795) = 0.9922
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b) More than 5000 :
z = (5000 - 3333) / 551
z = 3.0254083484573503
P(z > 3.0254083484573503) = 0.0012 ----> ANSWER
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c) Between 3000 and 5000 :
z = (3000 - 3333) / 551
z = -0.6043557168784029
P(z < -0.6043557168784029) = 0.2728
z = (5000 - 3333) / 551
z = 3.0254083484573503
P(z < 3.0254083484573503) = 0.9988
P(3000 to 5000) = 0.9988 - 0.2728 = 0.726 ---> ANSWER
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