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Thread: Normal distribution problem

  1. #1
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    Question Normal distribution problem

    #1
    Suppose that the time spent each month on a mobile-phone by a subscriber with a particular profile is normally distributed with a mean of 175 minutes and a standard
    deviation of 45 minutes.
    A mobile-phone operator offers the subscriber a monthly flat rate plan:

    • 90 minutes’ use or less costs 35 dollars

    • between 90 minutes’ and 240 minutes’ use costs 60 dollars

    • more than 240 minutes’ use costs 75 dollars.


    Question 1:
    Assuming that the subscriber’s use of the phone does not change, calculate the mean and standard deviation of the subscriber’s monthly charges.

    Question 2:
    Why is the assumption that the use will not change unrealistic?

    Last edited by topsquark; Jul 31st 2018 at 10:14 AM. Reason: Tweaked LaTeX
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  2. #2
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    Re: Normal distribution problem

    Quote Originally Posted by hsetima View Post
    #1
    Suppose that the time spent each month on a mobile-phone by a subscriber with a particular profile is normally distributed with a mean of 175 minutes and a standard
    deviation of 45 minutes.
    A mobile-phone operator offers the subscriber a monthly flat rate plan:
    • 90 minutes’ use or less costs \$35
    • between 90 minutes’ and 240 minutes’ use costs \$60
    • more than 240 minutes’ use costs \$75.

    Question 1:
    Assuming that the subscriber’s use of the phone does not change, calculate the mean and standard deviation of the subscriber’s monthly charges.
    Question 2:
    Why is the assumption that the use will not change unrealistic?
    Please show what you have done and tell us what you do not understand.
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