Answer to Question #113186 in Economics of Enterprise for Praneeta singh

Question

Retail price of fuel is uniformly distributed between $2.00 and $3.50
A) Calculate the retail average price of fuel?
B) what is the probability that the price of fuel is less than $3.00
C) what is the probability that price of fuel is less than $2.00

Answer 1

A) The retail average price of fuel is:

$P = (2 + 3.5)/2 = 2.75.$

B) The probability that the price of fuel is less than $3.00 is:

$\frac{3 - 2} {3.5 - 2} = 2/3.$

C) The probability that price of fuel is less than $2.00 is:

$\frac{2-2} {3.5-2} = 0.$