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    Normal Distribution: Tax Preparation Fees

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    In 1999, the average charge for tax preparation by H&R Block, Inc. was $84.57. Assuming a normal distribution
    and a standard deviation of o = $10, what proportion of H&R Block's tax preparation fees were.

    a. more than $84.57?
    b. between $64.57 and $104.57?
    c. between $74.57 and $94.57?
    d. more than $104.57?

    2. For the normal distribution described in Exercise
    1, what is the probability that a randomly selected
    tax preparation customer would have paid a fee
    a. between $70 and $80?
    b. under $60? c. over $90?

    3. It has been reported that households in the West
    spend an annual average of $6050 for groceries. Assume
    a normal distribution with a standard deviation of

    a. What is the probability that a randomly selected Western
    household spends more than $6350 for groceries?
    b. How much money would a Western household have
    to spend on groceries per year in order to be at the
    99th percentile (i.e., only 1% of Western households
    would spend more on groceries)?

    4. A random variable is Poisson distributed with
    alpha = 0.50 arrivals per minute. For the corresponding exponential
    distribution, and x= minutes until the next arrival,
    identify the mean of x and determine the following:

    a. P(x <or_ 0.5)

    b. P( x <or _ 1.5)

    c. P( x >or_ 2.5)

    d. P( x >or_ 3.0)

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    Solution Summary

    This solution determines the proportion of tax preparation fees that H&R Block Inc. will accumulate.