Question 1 The weight of a package delivered by a courier company is normally distributed with mean 15 kg and standard deviation 1.75 kg.
(a) There are 9% of the packages weigh heavier than w kg. Find the value of w. (4 marks)
(b) Suppose the shipping fee set by the courier company is $150 basic charge, together with an additional charge of $16 per kg of the package. Find the following summary statistics of the shipping fee: (I) Mean (II) Standard deviation (III) Variance (IV) Median (V) 91st percentile (6 marks)
a)
"z=\\frac{x-\\mu}{\\sigma}"
"P(x>w)=1-P(x<w)=0.09"
"P(x<w)=1-0.09=0.91"
"z=1.34"
"P(x<w)=P(z<1.34)=\\frac{w-15}{1.75}=0.91"
"w=0.91\\cdot1.75+15=16.6" kg
b)
X is cost of package
i)
mean:
"\\mu_1=150+16\\mu=150+16\\cdot15=\\$390"
iii)
Variance of weight:
"\\sigma^2=\\frac{\\sum (x_i-\\mu)^2}{n}=1.75^2"
Variance of fee:
"\\sigma_1^2=\\frac{\\sum 16^2(x_i-\\mu)^2}{n}=16^2\\cdot1.75^2=784"
ii)
Standard deviation of fee:
"\\sigma_1=\\sqrt{784}=28"
iv)
The median is the middle point in a dataset—half of the data points are smaller than the median and half of the data points are larger.
for normal distribution:
median = mean = 389
v)
91st percentile is a score below which a 91% of scores in its frequency distribution falls
for normal distribution:
for "P=0.91" :
"z=1.34"
"P(z<1.34)=0.91"
"z=\\frac{X-\\mu_1}{\\sigma_1}=\\frac{X-390}{28}=1.34"
91st percentile of fee:
"X_{91}=1.34\\cdot28+390=427.52"
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