Assume the room rate for a threestar hotel in Paris follows

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. What is the probability that a randomly selected three-star hotel has a room rate of less than 195 Euros?

Solution

P( x < 195)

P( z < [195-175] / 16 )

P( z < 1.25) = 1 - P( z > 1.25)

P( z < 1.25) = 1 - 0.1056

P( z < 1.25) = 0.8944